breadth of understand. whether the cultural issue would rise to be one of the two or three top priorities in a place is difficult to say, but it's possible and you shouldn't be excluded anymore than it should be the deform position that we take. i'm hoping we'll have the freshness of analysis that will be sensitive to those kinds of opportunities but not be cant ofive of anyone. >> thank you all very much. i really appreciate it. [applause] [inaudible conversations] coming up tonight on c-span 1 a look at recovery efforts an long-term look at japan's melt down last year. on the em and other possible

regulations. and later discussion about russia's government and the future of the nation's opposition movement. under newly elected president vladimir putin. saturday on washington journal, hovering ton post political reporter joins us to talk about president obama announcement that he supports gay marriage and the possible impact on the 2012 election. then robert a follower homeland security assistant secretary talking about the recent al-qaeda bomb plot and the reauthorization of counter terrorism laws set to expire at the end of the year. two teachers from the high school in illinois andrew ab and daniel take calls from students preparing for the advanced populationment government exam on tuesday. washington journal airs every day at 8:00 a.m. eastern on c-span. >> the house services committee spent nearly 16 hours this past

week drafting the defense authorization. rick mays is congressional reporter congressional ed story with military hiens joining us from capitol hill. what are some of the key issues that the lawmakers will be debating when it comes to the floor this week? >> so. key issues are issues that we've seen before talking about information at the end of the day, there's not much they'll do but i understand they'll have sense of congress resolution on things we ought to look at. they'll be fighting about detainees at guantanamo bay and cuba. we'll have trials for them in the united states. should we close the prison down in cuba? and -- the possible by the borings some detainees will be held will be tried in peace agreement in the middle east. those are the -- >> there's the larger fight that with had on the house floor this week over how much money to spend on defense. by the committee as $5 billion

-- $4 million. last fall and democrats are aren't happy with the money being spent. mostly where it comes from. by amendment there's not much they can do about it. where the money is being spend, the popular programs that most democracies would not want to vote to do. they spent money preventing -- retirees, you're not going find very many lawmakers who are going to vote for the increases on health care fees on an election year. >> in the committee debate this year, democrats said that the bill has billions of dollars for the weapons system the country doesn't need. how do they respond to that? >> republicans respond that we need them. it's a diswreement between the two of them. >> what an authorization bill does versus pentagon budget bill? >> well, this has specific authorization to do you need to start new programs or continue programs we're going expire. for example, there's more than

30 bonuses included that would expire on december 31. it's mostly for new starts policy changes. pay raises, new weapons programs within construction projects and things like that. it's a bipartisanship bill that was 65-5 vote. this is one of the few committees on capitol hill these days one of the few committees that gets the bill.name and pass it on a bipartisanship basis. >> it was a day-long hearing there must have been some contention. >> well, contention means you spend a lot of time voting taunting things without many votes. one of the interesting fights fights is 100 million plans to create a battery for the possibility of someday having countries like iran have whistles they can reach the united states. it's not an immediate threat right knit and the initial money is $100 million in terms of $6

50 billion defense budget. but -- with the $6 billion program. something would spent a lot over time. they are going to take a hit or set to take a hit in january twifort because the debt agreement last year does the authorization bill make any accommodation for that? >> no, it doesn't. that's done separately. there's nothing they can do in the bill that would change that. >> what do you see ahead on the house floor and looking beyond that when is the senate likely to take it up if it passes the house? >> well, the senate is backing itself itself -- the last week of may or in the committee when the senate might pass a floor is a big question the last few years they had great trouble getting the bill considered at all. i adopt think they'll have a final resolution until long after the november election. thank you for the update. >> i thought it was important to write a book that took people

movements that elected obama. how did they build over time. obama didn't come out of nowhere. 2004, 2003 what was happening? the tea party movement that came out of nowhere. what was the or begin. how did it work? occupy wall street? i think those are important things to take seriously. to look at them as social niew. the perspective. >> former white house adviser on social miewmplets in america today. saturday night at 10:00 eastern on book tv. contends that modern -- no answers for today's political issues. in the death of liberalism, sunday 11:00 part of book tv this weekend on c-span 2. >> i had my ambitious to walk with john smith. get pock hon it is a. this is makes a rectangular

space. she married john in this church in 1614. so i guarantee you i'm standing exactly a little deeper than she was. this is where she stood when she got married. >> this saturday on american history tv. tour the jamestown colony with project director william. yielded more than one and a half million unique art facts. take the tour starting at 1:30. and then join in the conversation answering your questions. live saturday at 2:30 p.m. eastern. part of american history tv this weekend on c-span 12. a year after a japan ease earthquake and tsunami spurred the meltdown of three nuclear reactors at fukushima powerplant. the her technology foundation hosted a panel decision. the long-term impact from the

disaster and some of the lessons learned. it's an hour and a half. good afternoon and welcome to the heritage foundation. as director of seminaries it's privilege to welcome everyone to the auditory yum and welcome those who join us on the website on all of these occasions. we would ask if our guests in-house will make the last courtesy check to see that cell phones have been turned off. our friends from c-span as well as my own recording crew will be very grateful. we'll post the program on the website in 4 hours. those of us watching are welcome to send their questions at any time simply e-mailing us. hosting or program this afternoon is steven biewk key. she is the --

defense and homeland security and the douglas and sara center. he focuses on cybersecurity and special operations as well as defense support civil authorities. dr. by key served for three decades in the pentagon official. is commander of the third forces. he lead deployments to eastern africa, south asia, and the persian gulf. in july, 2000, he assumed military -- and worked daily with the secretary for five and a half years. retiring from the army in 2005, he continued at pentagon in a sieve yab capacity as deputy assistant secretary of -- affairs. before joinings us here, he was a league consult to ibm on cybersecurity policy. please join me in welcoming my colleague steve.

steve? [applause] good afternoon and welcome to the heritage foundation. we are really glad to have everyone here and this particular subject is a very important one. it -- a year ago the heritage foundation wrote a really fine report on the tragedy that occurred in fukushima. one year later, they've written a new one, which is, again, and excellent analysis on what went on and what we can learn from our friends and allies in japan and how they dealt with the particular dragty. what we're going to do is afternoon is have our first speaker who will be mr. yasuhiko iwasaki from japan. and i will give the full introduction in a second. he will get up and speak to us. he'll be using a translator.

for those who have not had that experience with a speaker, it's a learning one. then, we will bring up a panel of three other speakers, who i will introduce at that time, and at the end of their remarks, we will then open it up for q and a. let me tell you ahead of time, i get kind of draconian with q and a. if you end up and start giving a speech, i will stop you, so you need to start right off with something that ends with a question mark at the end of it. that's what here for is to learn from the panelists. we have a fine panel this afternoon to discuss this. before we go any further, mr. yasuhiko iwasaki is the vice director general of the regional bureau of the ministry of land infrastructure trance port and tourism. he's responsible for development and management of infrastructure including highways, river

facilities and ports in the region. this is a key role in the subject which we're discussing very, very difficult portfolio in this kind of situation. so we're honored to have him here to share with us what he has learned and what he has experienced in the last year. so without further adieu, and to not take any more time, mr. yasuhiko iwasaki, i will give you the floor. [applause] good afternoon. my name is yasuhiko iwasaki. first, i want to thank you for offering me the opportunity. i am especially honored to be asked to be on the panel today. i want to tell you about the recovery efforts that our transportation department was involved in after the earthquake and tsunami.

i was assigned to the u.s. highway administration in 1997 and 1998. your invitation to come to washington brings me back happy memories for that time. now i will give you my presentation in japanese. [speaking in japanese] >> translator: i would like to give you a brief overview of the earthquake and the tsunami. [speaking in japanese] >> translator: in 2210, a massive earthquake hit the

northeast region of japan. [speaking in japanese] >> translator: in the earthquake caused a lot of damage in the wider area of japan. [speaking in japanese] >> translator: and also, the earthquake caused massive tsunami and it put us in a relative term to the united states, then the affect the area is about the length between distance between boston and washington, d.c. [speaking in japanese] >> translator: i have to note, this area does not have a high number of population in japan. [speaking in japanese] >> translator: but still, the region we have 3.9 million people living in this area.

[speaking in japanese] >> translator: also 1 million people suffered in the disaster. [speaking in japanese] >> translator: also, we lost about twenty people in the disaster. -- 20,000 people, i'm sorry. [speaking in japanese] >> translator: i'd like to show you some pictures that are significantly affected by the disaster. [speaking in japanese] >> translator: so this is the called the -- [speaking in japanese] about twenty people in population. 20,000 people in population. [speaking in japanese] >> translator: so this is a before and after pictures in the area. [speaking in japanese] >> translator: and the about twenty meter hit in this area.

[speaking in japanese] >> translator: this is before the tsunami. [speaking in japanese] >> translator: and you can see that how the damage was how large the damage was after the disaster. [speaking in japanese] >> translator? is area. the population was about 16,000 people. [speaking in japanese] >> translator: the main industry in the this area was fishery. [speaking in japanese] >> translator: and high searches of more than 10 meters hit. [speaking in japanese] >> translator: and unfortunately we lost about 4,000 people. [speaking in japanese]

>> translator: that is the overview of the disaster, and now lied toik talk about what kind of activities we implemented after the disaster. [speaking in japanese] >> translator: we usually have three steps of activities, which are in the white squares. [speaking in japanese] >> translator: and when on disaster happens we will implement activities for restoration and reconstruction. [speaking in japanese] >> translator: and something unique the activities after the disaster was the immediate response which we gave support

to the local government and also the affected people. [speaking in japanese] >> translator: and also the top priority was clear the roads because tsunami brought massive debris. [speaking in japanese] >> translator: and i'd like to mention some highlights of the activities. [speaking in japanese] >> translator: and one effective measure we were able to have the helicopter taken out from the nearby airports after the earthquake but before the tsunami. [speaking in japanese] >> translator: there are only two flights were made from the airport after the earthquake but before the tsunami.

[speaking in japanese] >> translator: and one of them was our helicopter which is shown on the left-hand side corner. [speaking in japanese] >> translator: we were thinking about sending some of our office staff to the airport we bewe decided to have only the pilot and crew to take off. [speaking in japanese] >> translator: because we did not spend time considering if we should send our people to the airport, so we were able to utilize the limited time after the earthquake and before the tsunami. [speaking in japanese] >> translator: -- [speaking in japanese] >> translator: and the other

effective point we were able to share by the video conference incoming our minister who was in tokyo at the time. [speaking in japanese] >> translator: and our first meeting after the earthquake was held around about three hours after. [speaking in japanese] >> translator: and our minister made two points. [speaking in japanese] >> translator: he -- he wanted to emphasize that beyond our ministries framework, we were asked to prioritize saving people's lives. [speaking in japanese] >> translator: and also, we

delegates the -- to make important decisions and he said that he was responsible for any consequences. [speaking in japanese] >> translator: and i'd like to point out that the video conference was shared throughout all the offices of ours throughout japan. [speaking in japanese] >> translator: i'd like to move into the third point. [speaking in japanese] >> translator: this is

>> translator: about the victims who were caught in the

debrises. [speaking in japanese] >> translator: not only the speedy activity but also we wanted to implement something careful activity. [speaking in japanese] >> translator: thanks to the support by the private sectors local, construction firms, we were able to reopen 15 routes among 16 routes within four days after of the earthquake and tsunami. [speaking in japanese] >> translator: i want to say that those private sector workers were very brave to implement these activities. [speaking in japanese] >> translator: they started their activities on the very day of the earthquake and tsunami,

even though the tsunami alerts was still in effect. [speaking in japanese] >> translator: so as this slide shows, we were able to reopen within ten days and also after about a month we were able to reopen the airports. [speaking in japanese] >> translator: i'd like to mention some points that were affected for clearing the roads. [speaking in japanese] >> translator: i'd like to go back to the last earthquake before the earthquake which was a earthquake in 1995. [speaking in japanese]

>> translator: so we have some reinforce some activities that had been done prior to the disaster to some structures. [speaking in japanese] >> translator: for those bridge that had been done with the reinforcement activities, those survived the accident. [speaking in japanese] >> translator: the second point of the ministry marginalized our resources in the over the 16 routes. [speaking in japanese] >> translator: i'd like to repeat again that our report that's give from the local construction companies, was very significant. [speaking in japanese]

>> translator: i'd like to move on to the fourth port. since being the national government, we were able to allocate and collect all the resources and communication resources to the affected area. [speaking in japanese] >> translator: and the devices were very helpful. [speaking in japanese] >> translator: they decided to send our persons to the affected area. [speaking in japanese] >> translator: we call these people after we use them and 96 to 31 -- [speaking in japanese] >> translator: these people are very effective to support

those leadership as professionals. [speaking in japanese] >> translator: and those that were mentioned by the local leadership was varied exceeding our normal work scope. [speaking in japanese] >> translator: beyond our usual work scope, we hoped procuring some of the necessary goods that also included -- [speaking in japanese] >> translator: i'd like to introduce some other activities. [speaking in japanese] >> translator: i'd like to

extend my appreciation to the supporting movement through the operation from the united states. [speaking in japanese] >> translator: thank you very much for your support. [speaking in japanese] >> translator: and i'd like to move on to lessons learned. [speaking in japanese] >> translator: i'm going to point out some things that were effective that we were able to implement some activities so urgently. [speaking in japanese] >> translator: and -- [speaking in japanese] >> translator: so one, three, four, five i've mentioned these points earlier. [speaking in japanese] >> translator: so i'm going mention especially mention the

second point to carry out and also to secure the functions of a management organization. we have to have resources that are not effected by the disaster. [speaking in japanese] >> translator: was because many of the the leaderships they lost their resources by the disaster. [speaking in japanese] >> translator: fortunately we were able to secure our facility after this disaster. [speaking in japanese] >> translator: these are some points that were being -- by the -- [speaking in japanese] >> translator: and the one

thing that was surprised me was the last point, which the professionalism shown to the communities. [speaking in japanese] >> translator: so i mentioned about the liaisons that were sent from our ministry for two weeks after the disaster we thought it was a critical. so we kept the liaison staffed in the local areas and they helped making decisions by the -- [speaking in japanese] ..

[speaking in japanese] >> i think it is important come especially to her daily activities and also maintain professional skills by managing

the ports and other infrastructure in the region. [speaking in japanese] >> translator: and also as i mentioned earlier, the support given by the private sector, that kind of support was arranged prior to the disaster. [speaking in japanese] >> translator: because we have such good relationships with the private sector, i think that both companies were successful unchain with requests by our government. >> translator: i would like to point out some issues and challenges we have to address. [speaking in japanese] >> translator: this is a map of

the region that was affected by this disaster. this shows some highway construction. [speaking in japanese] >> translator: this is construction and development. the black line shows highways that are completed. chance of seven -- you can see some of the areas are not built yet. [speaking in japanese] >> translator: to reconstruct and also revive the industry's in this area, we should be able to complete these highway projects and those other projects critical to the restoration. [speaking in japanese] >> translator: public works in

japan -- those were monitored by the public for the last few years. [speaking in japanese] >> translator: due to this disaster, there is a change of this discussion because people started recognizing that a diverse infrastructure network is very important for recovering from a disaster. [speaking in japanese] >> translator: we have to recognize that we have had some difficulties in terms of energy and also communications capacities.

when this type of large-scale disaster occurs to us. [speaking in japanese] >> translator: back in march of last year, and of course, this is in the wintertime in our area, there was some snow accumulation as well. we are lacking gasoline supply and also there was some plants that were lacking out in the region. [speaking in japanese] >> translator: i would like to point out the biggest challenge that we have to address. [speaking in japanese] >> translator: this the scale of the disaster is prophetically speaking, which is one time in 1000 years come and we were not prepared for this type of

large-scale disaster. [speaking in japanese] >> translator: japan is more exposed to natural disasters such as typhoons and earthquakes [speaking in japanese] >> translator: however, this type of natural disaster prone country, also we have some documents from the past, such a large-scale disaster can occur, and we were lax in preparation to fully prepare for this type of disaster. [speaking in japanese]

>> translator: the most important lesson that we learn from this disaster is that we should not limit ourselves in terms of making assumptions for our preparations for disasters. so i think that we have to think about various possibilities and also various types and degrees of damages to our country and be prepared. thank you very much. [applause] [applause] all right. i would ask her other three panelists to come forward when you can take your seats your vitamins as i began to introduce you. we have our very distinguished rest of the panel.

we are going to start off with mr. ed davis. edit is a need nuclear executive and has been for 38 years. he has done engineering, business management, project finance government affairs. he is currently the manager of the pegasus group. there, he is responsible for providing strategic consulting services to a wide range of clients in the energy and electrical utilities industries and in the federal agencies. he will be followed by an old friend of mine, doctor daniel kaniewski. he is the deputy director of the homeland security policy institute at george washington university. dan joined hspi after spending

three years on the white house staff. most recently as the special assistant to the president for homeland security and the senior director of foreign policy. he co-authored and edited the white house report on the federal response to hurricane katrina and the lessons learned from it. and he chaired the domestic readiness group at the white house and manage the presidential disaster declaration process. something that i have had a lot to do with when i was the deputy secretary of defense for homeland defense. to wrap up the formal presentations, we will have doctor kumi yokoe, who is the senior visiting fellow for japan and our asian studies center here at the heritage foundation. doctor kumi yokoe was a fellow at the institute of government and management and a visiting fellow at princeton university.

she is our resident expert in japan. we will begin with ed davis and began from there. >> thank you for the introduction. it is a real pleasure to be here with you. to share perspectives on the fukushima nuclear accident that occurred after the earthquake and ensuing tsunami. so much has happened and so much has been reported on the accident. i'm talking about the nuclear accident as distinguished from the national disaster that the previous speaker spoke about. so much has occurred and so much has been reported and is now helpful to do is look back and try to put this into some perspective. we can certainly process it. first come i would like to preface my remarks and i would

like to say on behalf of myself and my colleagues and friends in the nuclear industry, how deeply saddened we are about the magnitude of the devastation as we have seen on the slides, and also the large loss of life behind the earthquake and tsunami. we certainly wet that the fukushima accident that was triggered following the earthquake and tsunami, made things much worse for the japanese people by spreading radioactive contamination and caused many people's homes to be inhabitable around the site. on behalf of myself and my friends and colleagues in the industry, i stand here and would like to express my admiration for the japanese people for their courage and their bravery, resiliency and determination to recover from these tragic events. the japanese people and their heroic efforts have been

impressive and awe-inspiring to all of us. without them i would like to make direct remarks about -- not so much about the technology assessment or the regulatory assessment, i'm not here on the nuts and bolts of what happened on the accident chronology, but i want to put the nuclear accident in perspective, if you will. today, one year after, we still do not have a full distillation of the accident, it its causes and implications, socializes and implicates. stress tests, lockdowns, near-term regulatory reactions is getting lost between all that. the essential context and framework that we humans place around an accident so that we

can understand it and share and communicate with others, storytelling, even today in this hyper internet and media driven age, is still the most powerful form of documentation. for a story on fukushima, i was struck by today's contemporary accounts of the centennial anniversary of the sinking of the titanic. i imagine how the story of the fukushima accident was going to be boiled down over time and passed on to generations to come. so i ask myself the question and i ask this here in the audience and those that might be listening, was the fukushima accident a black swan event? black swans are in extremely rare animal. it has extreme impact and is

only explainable and predictable in hindsight, you might say. or is it more like a titanic event? the unsinkable titanic, a combination of engineering hubris and complacency inspired and that's an area where you have a speeding passenger ship that was traveling in a vicinity that was infested with icebergs and had it's on the known -- unknown flaw the shortage of lifeboats linnean thinkable happen. my perspective on fukushima is framed by a four and six month assessment on behalf of the u.s. client. we need to understand more about the accident to put it into context. we need to comparing contrast. i was there shortly after the accident and continued through the fall of september 2011.

in the assessment, i reviewed the uk cheats inspectors report that was done by mike wakeman. i reviewed iaea report in respect to the fukushima accident. i reviewed the japanese government's report in regards to the iaea. but i also received the maritime task force report. my preliminary conclusion, preliminary because not all the information is in, and today it is not in. there were a great deal of the similarities between the sides here in the united states and the one that i study. i concluded and sympathized the story of fukushima in my own mind. my story was that fukushima was in hindsight, foreseeable. that may sound like a non sequitur to many of you. but here is how i recount the

accident and how i share it with many of my friends and colleagues and neighbors that i interact with who have asked me a question about it. number one, the plant was located about 110 miles from the intersection of the mountain with four tectonic weights. the so-called ring of fire. the natural elevation, the location of the japanese imperial air force base, was lowered from its original elevation, 35 meters height, was lowered 25 meters to the level of 10 meters, exposing the site to the impact of tsunamis. for a a lot of reasons, the seawall that was installed around fukushima was under designed for the size of the tsunami and eventually reached the shore there. emergency diesels that we all know about and talk about it are

the backup in case the off-site ac power is lost, were placed in the basement of the turbine buildings facing the pacific ocean. you asked why were they placed in the turbine buildings in the basement? because they wanted to protect them from a seismic event. then there was some gas and the regulatory oversight. one might add other thing. the sea pumps. the sea pumps were located in elevation that was below the advised level of potential tsunami. so the accident, in my view, was not the inevitable consequence of the rare act of god. if in fact the sound practices of engineering, sound regulations, periodic expections and evaluations, certainly, i

think that is something, and in the future, certainly we can prevent it. causes of fukushima are obviously, as we all know, the earthquake knocked out the six external ac power transmission lines. the ensuing tsunami that followed about 40 minutes later, it was a series of waves. seven undulating waves. they knocked out 11 of the 12 diesel generators which were situated in the basement of the turbine buildings. again, facing the pacific ocean. totally swamped. the critical -- and this is a point on often mentioned in critical analysis -- the seawater pumps. these are the ones that are required to remove the heat from the plant. the seawater pumps were basically destroyed and rendered inoperable. the electrical connections between the switchgear, between

the emergency power and pumps, was lost. as a result of this, this is called commonly in the nuclear business as a blackout. a cessation blackout also occurred in the loss of the heatsink. as i mentioned, the sea pumps. the fact that the seawater pumps were lost and others were lowered in elevation in the reactor buildings, they were totally flooded and completely distorted. therefore, eliminating any possibilities to remove heat into the sea. without a heatsink and the ability to remove the heat to the sea, the only option left was to feed and bleed and eject the heat to the atmosphere, which was done. but that cannot be done quickly enough to prevent the court from

melting down. the reaction sequence accelerated. we had hydrogen buildup and a hydrogen explosion and so forth. what we have learned from all this, the flood hazard and the risk of tsunamis is just as great as the risk of an earthquake event. a seismic earthquake event. the periodic risk assessment should be considered. data and methods changed with time. we need to refresh our design basis. for the protection against natural hazards, at least every 10 years. there can't be complacency about nuclear safety. the plant owner, not the government, this is a point i want to emphasize and come back to, because i have a little vignette to share. the plant owner -- not the government, is ultimately the primary entity that is

responsible for safety. what i'd like to share is an account that was put in "the wall street journal" and then i will wrap up. recently on april 13. about the titanic. the ship carried 2224 people and had only enough like books to squeeze in 1178 people. yet, as this article reports, yet the titanic was fully compliant with all the marine laws. the british board of trade required all vessels above 10,000 metric tons to require only 16 lifeboats. the titanic had for more than 16. but the white star -- the owner of the ship -- had built a ship that was 46,000 tons. four times the limit that was associated with a number of lifeboats. the conclusion that this author,

who is a fellow at the institute of melbourne australia, he writes that entities can to comply with specifics of regulations. not the goal of the regulations themselves. all too often, once government takes over, private risk management becomes regulatory compliance. at this accident score, he is talking about the titanic, it is this reality. british regular readers assume responsibly for the lifeboats and then botched that responsibility with the close reading of the evidence, it is hard not to see that the titanic disaster was a tragic example of government failure. why do i mention this, you might ask? because of the time, the u.s. industry and the aftermath, concluded that near compliance with regulation was not sufficient. it wasn't good enough just to be

compliant with the regulations. the owners were the primary responsible entity for ensuring safety. without recognition, they formed the institute for nuclear power operations, which is located in atlanta, georgia, which took collective responsibilities by the owners. realizing that in an accident was an accident everywhere. they encourage us to learn that now the japanese plant owners and operators are forming their own group to take full responsibility for the safety and years to come. without them i would like to conclude my remarks and be happy to engage in conversation with a panel here afterwards. make you very much for listening. [applause] [applause]

>> thank you, ed davis, and i look forward to picking up a on a few of the themes you have product. specifically, risk management and lessons learned by the two topics i'm going to hit. as steve mentioned, i worked in the white house and i had started just one month before hurricane katrina. my role was in the response area. i was responsible for responding to natural disasters. lo and behold, the worst-case scenario happened in august of 2005. i will say that katrina has been something that has been with me ever since. not only there was i seeing the response to it, but i had the opportunity to be a part of the team to look at the lessons learned from the disaster, and implement those lessons learned. some of my colleagues here at the heritage foundation invited me to be a part of this task

force. about a year ago. i have to tell you, i had a have a bit of déjà vu. here is another disaster that had cut across the consequences. in hindsight, the failures to that spots were obvious. as ed mentioned, we would call that a black swan. as we talked about, it is something that we did not anticipate ahead of time, but had catastrophic consequences, and in hindsight, seems so obvious. for the sake of argument, i will make the counter argument that i have made. i will say it was a black swan that happened in japan. it is a black swan because it wasn't just an earthquake. it wasn't just a tsunami. and it wasn't just a nuclear incident. it was all three of those things wrapped together.

recent hurricane katrina here in the united states was catastrophic is because it was not a single disaster. it wasn't just a hurricane. it was a hurricane, by the way, it was a category three hurricane when it came ashore. a category three hurricane should not be catastrophic. what made a catastrophic was the failure of the levees. and it was something that we commonly know, a disaster within a disaster. those two scenarios, one of which was unlikely -- meaning the levees been breached -- and one fairly likely, a category three hurricane, those two things put together make a disaster a catastrophe. which japan-based, it was a disaster within a disaster within a disaster. and i have to tell you, not only was the earthquake is nominee

and a nuclear incident, that nuclear incident has such a strong feeling for all of us, particularly the japanese. it can cause not only fatal consequences, but severe psychological consequences. one of the things that we saw in that disaster was the resilience of the japanese people. we all remember the tv images from hurricane katrina, and many disasters that we face in the united states. i have to tell you, americans -- we are not as resilient. how many of us have food stocks piled in our homes and water stocks end medication? we know that we should, but most of us don't. but how would we react to a turbo catastrophe hitting us and destroying our homes, injuring and killing our friends and family, and then to see on tv, the japanese people waiting in line for food and water in an

orderly fashion, immediately after the disaster, it was really remarkable and a testament to the resiliency of the japanese people. i can only hope that we as americans adopt some of these lessons. one of the areas that i feel strongly about in a report recently released is the need for individuals to take their responsibilities seriously. if you think the government, whether it is the japanese government or the u.s. government to be there to help you in a disaster, you are crazy. you are going to be on your own. the department of homeland security tells you that you're going to be on your own for at least 72 hours. but they are serious. you're going to be on your own. local governments and state governments and certainly not the federal government can be there for you in your time of need. on the risk side, we talked about this being a black swan. i mention, for the sake of

argument, that it was a black swan. we need to realize that we need to be prepared for extremely low probability, high consequence events. and i would say that the japan example is the best example i can give you. those three scenarios, all rolled into one, who could have predicted that? is easy in hindsight, of course it is. but first of all, who's going to allocate resources to that low probability event? when you think, by definition, it is unlikely that it would happen. the probability isn't zero. that is the tough part. we could say that we don't need to allocate resources. but what if the probability is one in a hundred or one in a hundred thousand? is a policymaker, how would one allocate those resources? this is the challenge we face in the united states for years.

something we call homeland security. homeland security grants, for example, something i know about, it was controversial when we started this program when dhs was created. giving money to states and local governments to prepare for disasters. how do you decide which state to give more money to? is a high population? in other words, do you give it on a per capita basis? or does every state deserve a certain amount enact does north dakota deserve the same amount as an interstate? it is very controversial. eventually we came to a solution. today, grants are allocated based on risk. i will tell you, that probably the number one variable that goes into that equation is population. but their are a lot of other factors to consider. it's not perfect, but weise we are using a model of science to inform how we allocate resources. but that still won't prepare us for that black swan. that black swan can be so

catastrophic, and again, in hindsight you can rationalize it. but at the time it is difficult to predict. we have to embrace the all hazards approach. some of the basics and approaches we have, such as evacuation or infrastructure rebuilding and resiliency, or going to be common to matter what kind of disaster happens. one of those disasters -- even if one happens, whether it is an earthquake or tsunami or nuclear incident, evacuation is a key component. making sure the roads and bridges are cleared is absolutely critical. let's invest the money in planning for this all hazards environment, just as we heard japan is now going to do. i frankly do not blame japan. it is easy for us to stay with the japanese government -- that they could have predicted that this would happen. i think the japanese have gone

through a lot of lessons we can learn from. for example, i talk about individuals. in our school, we do fire drills. right? we are lucky if we do one fire drill a semester. yes. at the elementary school level or even the collegiate level. in japan, do you know that they have monthly earthquake drills in many places? monthly earthquake drills. they do that because they see that as a high probability, high consequence event. we need to be prepared, whether it be the elementary school example i just gave for the public at large needs to understand the particular risks that they face, they need to be prepared for. some areas are obvious and some we are very prepared for. floridians are very well prepared for hurricanes. why? because it happens almost every

year. also, the florida government. the state emergency department is one of the best in the nation. why? because they always have disasters. they have these major hurricanes frequently. a good example is california. earthquakes. no better state were no better individuals better prepared in the united states than the california people and california government. they understand that and they prepare for it. i don't fault the japanese. they were prepared for an earthquake. they were probably prepared for a tsunami as well, but those two together with the nuclear incident? it is unrealistic to expect that anybody could have predicted it, but allocated significant resources for that particular low probability, high consequence events. in closing, i hope that we do embrace some of the lessons

learned. as americans and japanese, from this disaster. i urge us to look at it from all hazards approach and not simply focusing on a low probability event -- three particular incidents will together, happening again in the near future. it very well could be a thousand year than him up at these events or other events that we don't predict, they will certainly happen and we need to be prepared for those. they do. [applause] [applause] [applause] [applause] >> this is my honor to be here as a speaker today. i am very excited. i can talk about public views in

japan. i was in japan when we had this disaster. i walked from my company to my home for three hours. i couldn't forget the sea and i couldn't forget how much i felt, how much fear i had. you guys understand, thank you so much. washington dc [inaudible] just like after i moved here to be here, i am well versed in experience of emergencies. today, i will raise three discussion questions between the united states and japan.

why did japan stop the nuclear power reactors? the answer is because it is hard for the japanese to trust the government now. it is expensive. regardless of the benefits, safety must come first. safety. however, the visiting people do not have confidence in the japanese government. have a good example.

why is it that the people cannot trust the government in regards to the nuclear reactor right now? it was shocking for japanese people when the news came out that even the japanese government [inaudible] the japanese government did not tell the results to the japanese people. instead, the government kept the news to the u.s. government. how can people trust the government, even if the government [inaudible]

the nuclear commission [inaudible] i think that first of all, the japanese government has to make information sharing and providing [inaudible] he needs to have an information sharing program. i think there are two reasons one has to do with the administration in japan. i understand the japanese government has some reasons for not informing japanese people at the time. japan is a small country. japan doesn't have a transportation system for so many people to evacuate. the japanese government to disclose speedy information because it wanted to investigate

the cause of the implication. at the time, japanese media had trouble to cover it. it cannot provide could not provide the information that the japanese people wanted. some of us then had to collect information, but they could not analyze anything because of authority, panic and japan. my next point is movies. there are lots of movies that help us understand the difference between the united states and japan. [inaudible] for example, deep impact. i have a good example.

[inaudible] the press and tokyo. [inaudible] this is what u.s. projects [inaudible] it is a right to japan. it is not so easy to move around in japan because things are very tight. the second reason that the japanese didn't have information sharing, we don't have systems within the government. you've created information systems after 9/11.

in 2004 you made information sharing crucial to emergencies. it was a guideline as to what could happen and it is what the government should do. in my understanding, in 2005, the u.s. government [inaudible]

hurricane katrina. i think that we should have learned from 9/11 and 1995, more information -- [inaudible] information is necessary for such an information sharing system. we have much to discuss. first, this has affected japan. as i mentioned, we are a small country. we are intimate. we are local communities. some communities have advantages and disadvantages. one advantage is [inaudible]

to get food and supplies. in the aftermath of disaster in japan, because we don't have anyplace to run away. after fukushima, we must cooperate in the communities. on the other hand, such a community sometimes has a disadvantage, too. peer pressure prevents people from change. there is much to discuss in these kinds of communities. this is not only a program. it is a nationwide program in

japan. [inaudible] [inaudible] the collection of cultural information in the 1990s. i hope that the u.s. and japan can collaborate for the sake of japan and all of the countries say. we need to make nuclear safety important and also information sharing. thank you very much. [applause] [applause] [applause] [applause]

>> okay. now we are going to have the q. and a. thank you to all of our speakers. i would ask you, we are on c-span to live, so if you have a question, please wait until you have the microphone in your hand before you start your question so that they can hear the whole question. we have one right there. i will hold my moderator and let you guys get started. please stand up, and identify yourself. >> i have a question about mitigation. i can see in this report, it involves a lot of money. a lot of money spent by local governments, presumably or federal governments and central governments in the case of japan. it is all based on the idea that people are living -- some people

in the communities are located in the wrong place. we know from experience that floods, earthquakes and the like, you have to move the community. that is a huge economic crisis and political and spiritual and psychological. we have a problem in tokyo where we talked about the landfill areas. you have problems all the time in the gulf. bailing out new orleans or other places. >> let's let the panel comment on this. would anyone like to go first on its? >> sure, i will take it first. a great question and mitigation absolutely is essential. medication actually has a very high return investment. mitigation is spending money now

to reduce expenses later. some studies just that if you spend a dollar now in mitigation, you will save $4 on the response. that is a great investment. the problem is you have to spend that first dollar. that can be very expensive. hundreds of millions of dollars to move a community away from an area of risk along the shore. from financial terms, you will have to invest a lot and save some down the road. two, there are obviously some huge social cost to you. it is not realistic in every situation. a good question is that mitigation is absolutely key. even when you have a high return investment, it does require a large upfront cost. >> any other panel members who

would like to comment on that? >> okay. we have a question in the front. >> good afternoon. i am a homeland security fellow. a question about data in the middle of the crisis. in the bush white house, and didn't the bush administration, that was a challenge with hurricane katrina. you have basic information, sometimes it is not accurate. but massive amounts of information. i'm curious for the panel to comment on how you observe the japanese government and the japanese society in their way of handling that data, what worked and didn't work. doctor daniel kaniewski, if they're on the contrast but you might draw between the japanese earthquake and hurricane katrina and the flooding. >> the director general, would you like to go first?

[speaking in jap japanese] [speaking in japanese] >> translator: i think there are many different discussions and good and bad reputations as well. speaking for my ministry, i think that we were very open to giving information to the public. regarding the nuclear accident, i think that japan itself was in

a panic situation at the time. also, that we have not had such a difficult time in the nuclear accident in any other disasters to compare to. i think we were not prepared to give information and also share information. [speaking in japanese] >> translator: i would like to point out that we did not hide any information, but we did not have any examples to follow on how to share information. >> i would just offer from my nuclear industry perspective, after 3-mile island and communications on the site between the operator and the operators responding and going to see the connection in

conjunction with state and local responders, it proved to be essential. many additional arrangements were made in the aftermath of 3-mile. also in the nuclear regulatory reactions in bethesda. the accident had fukushima, the communications can be efficient in the face of response. >> with a compare and contrast to hurricane katrina, with hurricane katrina in the gulf area, we had complete destruction. we often hear the term interoperability. there was no operability. no power. landmines not working. the situation awareness on the ground was very poor. we did not know what was going

on. i remember sitting in white house and trying to figure out what is going on through the tv, and we had so much conflicting information. you never know what information to trust and what not to trust. in the case of katrina, we did not have any official information. we didn't hear anything from the local emergency managers or state emergency managers, and that was a very big challenge that was resolved. in japan and the united states, we had several technology needs like cellular phones and satellites. in addition to the media and what made the two disasters different, what change from 2005 to 2011? well, we have social media. honestly, that makes a huge difference. social media, for better or for

worse, provided real-time information to everybody at the same time. the good news is, at least they had information. >> i will just throw a comment out. even elements like the national guard, you know, people are looking for ways to get communications backup in an emergency with a common end their temporary cell towers in some way to get a temporary internet activity out there, everybody understands how valuable that communication can be in those situations. even if it is out of control of the government. it is not easy in a situation like we had in hurricane katrina, where everything was gone. there is lots of effort being thrown to try to fix that problem, so that the next time that one of our countries has a disaster like this, we have the means to jump in there and get things back up as quickly as possible.

>> social media and the internet helped so much. on the way we could get food and we could use the bathroom or we could stop. as i mentioned, i was in business in the government. this is my comparison between the united states government and japanese government. many japanese companies share information -- information sharing companies, is learning, like the american government does now. >> the gentleman right there in the back row. >> i am an assistant to the

government of japan who was here recently. this question, it surprised me, because we see japan as a common-sense culture. this picks up on all the points you have made. i asked is there any discussion in the media of underground shelters. it seems like a tsunami will hit the shore within 15 or 20 minutes, maybe, that people would need an underground shelter as at least an option to get you? unshed can you pick up on that point? >> can you pick up on that point. well, i will tell you. [speaking in japanese] [speaking in japanese]

[speaking in japanese] >> translator: i would like to make one point that japan is a very prone country to natural disasters. i think that the japanese people have a very high resiliency in their mind. but i have to admit, that we lack in preparation for this particular disaster, which was a one in 1000 years thing.

as was mentioned by the other panelists, i would like to agree with how education is important for the preparation. also having physical preparation, too. also, i showed some pictures from the per picture. someone at their houses and somewhere in the disaster, but those students who stayed in school, they survived the disaster because they knew how to evacuate or how to behave in such an emergency. they had implemented monthly drills and how they need to prepare and behave in such an emergency time. >> i would just add a point in terms of the nuclear plant safety accident prevention.

obviously, the essential equipment, such as what occurred at fukushima, where you need to move it to higher ground, or you have to protect it and compartments. in some places in japan, some of the essential equipment was protected in leak tight compartments. it is no reason from an engineering standpoint, like the diesel generators and see pumps couldn't be protected in bunkers and see tight compartments. >> another question? okay, sir. right down here. >> is there a specific discussion in japan on shelters? we call them storm cellars, where people can quickly get to -- you know, rather than running

up hills. [speaking in japanese] >> translator: i do not think so. i don't think that we are discussing building underground shelters. [speaking in japanese] >> translator: i think that those shelters are not very -- they are only effective for tornadoes and such. we do not have those in japan. i've have to think about how effective those underground facilities would be in japan. and i also want to point out that this nuclear accident in fukushima was so unexpected.

.. .. and then you can see what america can learn from that.

>> i think this disaster shows how the traditional and and we assure that our kind of weak point, but i think it is a

responsibility to make new technology to make peaceful technology so i believe this disaster helped promote the new technology coming to help the country who. >> [speaking in native tongue]

>> translator: this is such a complex question that i can point out that people in their region of our more traditional and very polite and also respectful people. >> i think as some of you pointed out there were people receiving goods after the earthquake and tsunami and but i think those people, they are culture and their characteristics mitigated so much of a disaster. >> if there was a large scale disaster in the area i'm not

sure if people would be even the same manner and so i think we can definitely mr. linus heart technological advancements to mitigate some panic and also risk and damages to the people. >> [speaking in native tongue] >> translator: the information in such a critical issue we have to continue to work on and discuss, and i think if people are given an accurate and fair information i believe that people what eventually reach a right answer or decision.

>> [speaking in native tongue] >> translator: we can probably a lot all of their resources and the infrastructure right after the disaster, so i think we have to take this as an important lesson to learn for the future disasters and i think as of your panelists mengin, information sharing is critical. >> my comment directed at the nuclear power plant safety operations you asked the question what americans can learn on this occurrence and the earthquake strikes me as a

uniquely american word that we have learned so much from the japanese scientists and engineers in terms of understanding seismic earthquake evens and how to protect less than ten years we will be learning from the japanese how to protect the nuclear plants in terms of protection, no doubt about. >> japan and the united states are very similar, technologically so. we are an educated population the end of the united states is much more diverse and we face a

much broader variety of fritz rhetoric earthquakes, west coast or hurricanes on the east and the golf or tornadoes in the midwest and makes it challenging country wife. there are practices in japan and the buildings are built to withstand earthquakes in japan. luckily we also do the same thing in california and other states prone to earthquakes the building code is much stronger in california than in his new york. we remain very vulnerable and high consequence event for example the rf creek in new york because there are not many strategies in place. the buildings cannot withstand

the major metropolitan area and it can be devastating on the scale of its third world country. they have far greater damage as a result of natural disaster because they don't have things like building codes to the investigation. >> i'm afraid our time is up. i would like you to join me in thanking the panel for this interesting discussion. [applause] and my apologies for c-span for calling it d'aspin. thank you very much and have a wonderful afternoon. [inaudible conversations]

cutting back in an age where crime is global in ways it wasn't ten years ago and by that i mean whether it be organized crime or cybercrime coming gangs, they're globalized and consequently that entity that has the best chance for

addressing global list criminal activity is the fbi and consequently if you cut us from doing at a point in time much of the crime is a globalized, it is a double hit in some sense.

to prevent another financial crisis. her remarks came during the investment company institute's annual meeting in washington. the chairman also discussed proposals to tighten regulations on money market funds. market volatility in financial literacy. ♪ >> a good morning everyone. a welcome to you all. maybe like me you will have beatles tunes buzzing around your head. we are heading to the final session of the 54th annual general membership meeting and

we are especially privileged this morning to have mary shapiro, the 29th chairman of the united states securities exchange commission here to provide a regulatory update. our format this morning is a q&a and i am pleased she really is the hardest working person. melanie hobson, the investments and the chair will serve as the questioner. we are eager to get to the conversation but first to say a few words about german shapira. in short, she has had a remarkable career as an effective regulator and an extraordinarily strong advocate for investors. in 1988 president ronald reagan appointed her the commissioner of the fcc -- sec. she was named acting chairman by president bill clinton in 1993. president clinton later appointed chairman schapiro the chairman of the commodities futures trading commission where she served until 1996.

from there, chairman schapiro entered the leadership ranks of the financial industry's self-regulatory organizations. in 2006 she was named chairman and ceo. in that role, she oversaw the merger with a member regulation operations of the new york stock exchange. she became ceo of the resulting organization the financial industry regulatory authority. in january, 2009, president obama appointed chairman schapiro the chairman of the sec and she was unanimously confirmed by the united states senate. during her tenure mary schapiro carried out their investor protection mission on an amazing number of fronts. implementation of the dodd-frank act, the 2010 reforms of money funds, changing the role of credit agencies and many of her subjects. for her extraordinary dedication and her extraordinary

accomplishments over a long year as a regulator, chairman schapiro deserves and has our deepest admiration and respect. there's plenty to discuss this morning so let's proceed please join me in giving an especially warm welcome to chairman mary schapiro. [applause] >> i have to say we've had a fantastic conference and great people but you are one of the most anticipated conversations in this previous and when people found out this was a q&a questions came flying so i hope we have a really great discussion. the injury excited.

i want to start off talking a little bit about your career in setting the stage for the conversation. you have a remarkable career as mentioned, clearly obviously now chairman of the fcc would your chairman of the futures trading commission, the ceo fnra and the question that i have is how does the prior will prepare you for this job you have right now? >> you know, i think everything you do prepares you for river comes next. if you are going to take the lessons learned, so for me being in the governmental role is helpful as a blueprint today than it was 15 years ago. the opportunity to work at fnra and the metal that straddles the private sector and public-sector but still in a regulatory role was instrumental in a constructive and i obviously spent lots of times the brokerage firms and people in the business and got to learn on

the issues they confront it every day and all of the top to inform the things we're doing now in the rulemakings base. running the cftc a tiny agency with a lot of responsibility again helpful and understanding much bigger agencies how to approach the issues they would have on the management and operational perspective so that was helpful. i think very generally everything you do prepares you hopefully as you are willing to be a sponge for whatever comes next. we have to change course and modify the thinking and learn about i think it helps you build a more solid foundation for whenever challenges are thrown a few. >> one of the things you sit in that answer is the government today is different than it was then. our is a different? >> when i think about the sec was like i was there from 1988

to 1994 and the stakes are high here today because the financial crisis and i came at a time people were reeling and continue to be and they gave a remarkable talk about what people are going through today and that clearly wasn't the case in the 80's and 90's, so the stakes are higher, the job is so much more complex, the problems are more complex, the market's move in lightning speed. the world is much more interconnected and more highly globalized and the government of the institutions are not what it should be. investor confidence in our industries is at a low, that presents a lot more challenges. another big difference i was a

commissioner then and chairman mao and the job is very much complex and the management of the agency as well you play basketball in high school in volleyball and by school across college. >> did play in those sports and some of the defense's efforts that you have to make help you in the role that you have now? >> this may be my proudest moment in the magazine. it is unbelievable. they do the positions several of the last five or so years they were extraordinary athletes and i couldn't carry them given that

they are amazing athletes but i think what team sports does for you is teaches teamwork so it teaches that there are times to be aggressive and times to hold back. there are times to get yourself out of the way and let your teammates do with the need to do. there are ways to signal each other and anticipate what others on the team are going to do in order to achieve the goal in that case the actual goal. they do commencement addresses and bea lummis team is one of those things the will serve you well from the entire life because it is said they saw you that is about the team when i looked the team we've built and so honored to serve with people who are so competitive

hard-working, so creative and innovative and open-minded and feels very much like being on the lacrosse field taking cues from each other and driving towards the same ultimate goal. >> we are going to come back to the team a thing in imminent but we want to ask one other question as we talk about the courier. where did you get this drive and interest in public service. you could do anything and yet you had a very specific niche. >> i don't know where it came from but i know i've always loved policy. i started my career right after law school for one short year a trial attorney and by he did it. i didn't like the tension and the narrow this is our issue we are litigating on and this is what we are doing and i love the birth of public policy and i love the idea we can affect

people's lives and make a difference and we can build coalitions and collaborate and gather information can't tackle problems and really make a difference. i never thought i would debate in the financial world for sure but it's wonderful to come to the sec every day and know that you can face any one of those issues because the scope is so broad we are talking about accounting issues and international standards from 10:00 to 11:00 and 11:00 to 12:00 we are talking about whether we have granular disclosure about the sovereign debt holding by the major banks and then from 1:00 to 2:00 we will be talking about a dark pools and the trading market and 3:00 to 4 o'clock we will be talking of the mutual fund issues or the duties for the broker-dealers. the scope is extraordinary and

that makes it interesting every single day. do you feel like you can keep up with all of this? >> i tried but we have an amazing staff and the our seóul expert and the help me be prepared the best i can be. there are lots of issues i would love to spend more time on market structure. many of you have heard me say this is a deep interest of mine so we have the rules to do under dodd-frank and the jobs act rulemaking to do now and other things on the plate i can't do everything to the extent i'd like to so we have a great staff who can. >> you mentioned clearly that put an enormous amount of work on the agency and you have backlog in terms of getting where you need to be in all but has been required.

visa backlog is good or bad? >> it's a great question and we get the signals hurry up, slow down, get this done, why isn't this fun? you need to take your time because there's a lot. these are monumental rulemaking in many cases we are taking for example the over-the-counter derivatives market, completely unregulated market expects and we are trying to fit a regulatory regime around it. it's not as though we are on a clean slate so they are complex. we worry about unintended consequences. we try to be humble about what we don't know and don't understand and needs of tourists to teach us and that takes a lot of time. on the of the hand you have a sense of urgency because these are financial crisis rulemaking and these are issues the congress expects us to address

and we have our own sense of urgency because we don't want to see repeated the issues that put us ahead terrible space the have been so there's not a simple answer. it's not in good they are taking so long but not good. it's becoming a cliche of the regulations. we are taking the time to get it right, the reality is. stomach there's no question you've come during an extraordinarily difficult time. we felt on our side so we can only imagine how you've been from a fire hydrant from all that's come to you and there's been pretty bad a thing of of the fat and, the rauf, systematics to the years, there's been big banks. many of them you have walked into. they were not there before they

haven't. you talk to routt restaurant the agency. where do you think you are on matt process? >> i think about this a lot so i'm coming up after three and a half years now. when i arrived at the agency in early 2009 in january, bernie madoff had been no arrest of a few weeks before i left office last hole really very much in the crisis and some of the agency's programs over the largest investment banks hadn't functioned very effectively. it's a pretty dispirited. there's a lot of the senior level, the budget as a growth for years. i feel pretty good about as we

are a work in progress as every institution should always be the we've brought in incredible talent with current experience in financial service experience. we have the experts for the first time. the of operations from credit-rating agencies whose brought in great talent, who's really focused on one of the core criticisms in the agency which was a lack of. it allows. we've done. also through things like the cross border working group that brings people from all over to the top of the problem. in that case to me and you've seen the results of this, used

by chinese companies in particular have reduced. what we've done with listing standards sophie's collaborative efforts we took the enforcement division which is in many ways how people know the sec and there was a big tv too big division certainly not everything we do and we've restructured and organized it and took out a layer of management, is not something that used to happen very often and put people better managers that on the front. we create a specialist unit like the asset management unit that could become highly expert. the market manipulation that month and a fraud that month, highly inefficient so we could get deep expertise in the

municipal security market to the asset management market abuse area, foreign practices act if we organize a examination program so it's much more and the result of that are cleared in the number of referrals to the enforcement program. enforcement had a record year last year we brought more cases than ever before in the agency's history so area by area we try to think about how do we do it better, how do we become more nimble, how we become the regulator that you have the right to expect us it to be and the public has the right to expect us to be and i would say lots of work to do. they're always will be. and technology is the one the area we still have a very, very long way to go. >> if you were to say 100% in the space, trust respect has been completely restored a are

you at 60, 50, 75? >> it's a hard question. >> northen hanft? [laughter] >> it's probably dangerous question to answer slung won't answer it but we firmly believe we are on the right trajectory and i think we've had tremendous accomplishments revitalizing the agency, confidence in our ability to do what needs to be done. we should view ourselves as having a long way to go. the moment we say we are done, we are perfect we are the agency we need to be, i guarantee you we are not and would be a mistake to take our attention away from our efforts to only get better.

>> there was the same when you write you rock. i like that idea. you made a point about the number of cases use all and i've been curious about that. i read a statistic that's 42% more in the last two years 42% have been identified significant finding by one-third since 2009 you stated in one of your testimony. >> is it because people are doing more things that are not right or your finding things you didn't find before? >> it's more that our staff is better trained than they've ever been. we have more expertise than we ever had before and we are doing risk-based and fans so we are looking in those areas where we think there may be problems or even if we don't have a suspicion of problems he had seen red flags we know if there is a problem could have a severe

impact on investors and investor confidence so we're focusing on those and are likely to make enforcement to those findings because of the potential to hurt investors. at the end of the day we are not big enough to do everything and sometimes there's a misperception by the public that the sec is everywhere doing everything but i like to tell members of congress the size of the d.c. police department yet we have responsibilities for the largest capital markets in the world there are 10,000 public companies, fills a broker-dealers, many thousands of mutual fund groups with trillions of dollars of assets under management. we can't be everywhere so if we can't use the data and risk in what extra help focus those we will spin our wheels so i think

what our statistics show a and that is another thing that's different be of great performance metrics that we've never had before and we insisted on tuesday if things were working or not but if we don't use the risk and analytics to helpless focus we will spin our wheels and won't be focused on the right things for investors so i think it's what you are seeing is woodring more of the right things but the numbers reflect we are looking right area. >> i want to switch gears to the regulatory environment and specifically the members of the financial stability oversight council which brings all the regulators together and global regulation is taking a higher profile with a group of 20 creating the financial stability

board so as i was thinking about it you are in the room with a lot of banking regulators and i was wondering how does that shape you're thinking? >> it's interesting because whether it is the financial stability oversight council of domestic u.s. regulators, cattle markets regulators but the many bank regulators and insurance regulators or the financial stability oversight we really need new acronyms and we have others of these oversight body of regulators like the financial of the oversight board and the financial stability oversight board. >> seóul leer upon layer is the harder for you? >> it's a good and it has its

challenges. the good part is, as you heard from the introduction never have i seen regulators coordinating and collaborating more closely and that is a lesson of the financial crisis that domestically and internationally we need to have a better sense of what each of us is doing and what is happening with our regulated entity. we are not quite there yet. [laughter] that coordination, these are mechanisms not in the end of themselves their the means to an end so domestically i think it works pretty well. we need fairly regularly and we in the process of designating the financial market utilities systemically important financial institutions are the heightened provincial supervision but we talk about risk and build an

annual report in the next couple of months that talks about the risk that we collectively cease to the u.s. financial system and economy and it covers everything from money market fund reform to cybersecurity and the low interest-rate environment or the whole range of issues so that is a wonderful give-and-take and it's forced the agencies to get to know each other well. on the international level, it's perhaps not quite s fluid but it's also great for sharing what we are doing in our regulatory regime and how hopefully through this process we will create regulatory regimes for over-the-counter derivatives in particular and other entities the work in a global financial environment and we don't end up with regulatory arbitrage or

gaps. the questions of the bank regulators spiegel different language than we do and their focus is different but we all share the same concern about the stability in the resilience of the financial system so we have learned a lot from each other and will continue to revolve. >> you brought it up. estimate i know maybe i shouldn't have. committee was going to make sure you like to me add that we were good. [laughter] >> it's no secret that the industry, the mutual-fund industry are larger heads over this issue of money market funds. we all know where we stand so let's not debate that. have we solved that? >> we do know where we stand

although we have to say thank you there are a lot of people in the room who come to talk to us even in the last couple of weeks about these issues about how do we speak the same language and find a waste for word that is, british and i think that's wonderful and i applaud those that have been in to talk about that. i think i have a very legitimate concern about the risks that are posed by the stable in the b and the potential in this not hypothetical and we know what happened in 2008 and we know a thing as well the treasury stepping in creating the guarantee program and i was at fnra and very closely watching what was going on and had a profound impact of course on the

broker-dealer and advisers as well as investors. we know what happens when they broke the back and as the treasury stepping in to stop and we also know the tools to do that oregon. they do not exist any longer. congress made it clear that there wouldn't be that safety net available again so we want to confront this issue and have a very open dialogue. we want to put some concrete ideas out there for people to react and put out an informative cost-benefit analysis and talk about what happens to be if we go forward with the capitol buffer what happens if we try to go, what are the of the possibilities that exist to deal with these issues and have an honest and open debate and i

hope that is will we will be able to do ultimately and frankly we are counting on the industry to engage constructively. >> does that mean there is more room for discussion and the lines that have been drawn are not drawn in ink? >> nothing is done in a eink even when it is proposed is in the sense that it's been proposed but it's not final and my view is i think a lot of you always open to having discussions and we've had firms this week talking about these issues so there's always the opportunity to shape the proposal about is this a better way is that a better way come here is the core problem we are trying to solve. it's real, it's happened.

we have to be worried about this. here's how we think we should solve its. tell us what you think about it and do it in as constructive a possible way. one of the things that happened coming out of 2008 in the financial crisis and i was a regulator then so i'm very attuned to this. as lots of common terse said there were the regulators. they saw risks building in the system, they saw tremendous loss in the regulatory system whether it was of the sec supervised these large investment banks that were not bank holding companies whether it was happening in the housing market or what was happening with mortgage servicing, whatever the issues were where were the regulators? this all the risks were raising and we didn't sound the alarm bell. we can't sit by when we see what we think are genuine systemic

risks in the system and not at least half a discussion and raise the issue so that is what i'm required to do and i took an oath of office to do is i see a problem i think is a threat to our system hard we try to fix it. >> from our perspective there's no question we think regulation has made our industry a better industry. if you look at the long history of the funding industry it's been largely an unblemished history. we've had bumps in the road along the way that we've done what we said we would do and working with the sec we never dug-in like this and you haven't had that kind of relationship with us. how did that affect your thinking like they've never taken this kind of stance before.

>> de ici and the sec at a constructive relationship and in some ways to speak for 90 million americans with mutual-fund and this is the way into investing and participation 45% of households are you have a responsibility to speak for those people and in some cases shareholders and others but you also have a unique robert hendee to speak for people who don't otherwise have a mechanism through which to be heard on issues of importance to investors and we appreciate there's great passion on the money market reform and the

dialogue has been dug in to use your word the and we have seen on other issues. we've not gone ignored. i noticed it. we walked through the subway station and see this kind. we don't think they are very effective but we see them. i guess we are wonkish enough we would prefer a 50 page comment letter the ns line over the machine. >> can you go back and talk about that? >> we are so busy i thought our spokesperson had the best comment of all time which is we look forward to trying to fit the metro station into the comment pile. [laughter] but i don't take the metro so it was lost on me. some employees did take pictures

sylvia understand the passion around this issue but that doesn't mean that we can't -- we have to deal with it. >> outside of money market funds what keeps you up at night? >> i can't quite put money market funds aside. this is clearly true through the summer so let me say the reforms we did in 2010 were very good and very positive. it's a constructive force with their report i received very shortly after that helped inform our thinking about the 2010 reform and they worked well for what they were designed to do but we still come in every morning when there's been a problem and say what's the impact on money market funds whether it is a downgrade of the

european sovereign, the nuclear reactor issue in japan they all reverberate in the money-market fund space and it's still a frequent question what the exposure of money market funds. beyond that i worry about what we don't know and might be missing and all you can do with bill that is called people thinking creatively who are looking at the data doing the analysis triune to keep us focused in the right places. >> my last question on money market funds in the perfect world would they be smaller? >> that's not for me to say and it's not for the government to say quite honestly. they should be the size they should be. i want them to be resilient. i want them to be reflective of

the fact that the hour investment products and the value does indeed fluctuate. when i beriah to -- it has nothing to do with me with their tvs could or $4 trillion now they're $2.5 trillion selected to be a full airing to try to say the right size is ex. they should be what they should be. they should be resilient and strong and investors should understand exactly what they are. >> and what to do a little bit further. we talk in the industry about the volatility and i've heard there's a sign on your door that says does this help the investor. >> it's actually been there for three in a half years into the question is how does this help investors. >> so our is volatility helping investors? >> it's not. there are lots of questions about the market structure that i think deserve a lot more

attention and scrutiny than we have been able to give into the rainy day for the market volatility has to be me six, 2010 when as you all know the crash happened and actually i was supposed to speak at the conference next morning and the director of investment management was in my place because we were so consumed with dealing with the aftermath of the whiplash crash and put a lot of things in place very quickly to try to ensure we wouldn't have an agent like that, so devastating to investor confidence and frankly devastating the public companies $40 within states. sweden the symbol circuit breakers and the ability to quote it.

we ban access to the markets for the cuts that have to go through the risk-management systems when the trades would be broken. we do a lot of things to shore up with of the system. the next step would be to approve very soon additional mechanisms the approach you can't put in an order outside of a certain range bitterroot is happening in the market and we can reconstruct trading much more quickly after may 6th. we need to be looking at the tactics of high-frequency trader

there are so many key market structure questions and a lot of them go to the issue of volatility because there's no doubt in my mind it scares investors greatly and that's not a good as its duration. we want people to be able to participate on the capitol markets. companies can't raise money and can't create jobs if investors can rationally allocated capital when the stock goes up and down they do not understand when the market structure doesn't serve them well and i'm there on that issue to only about that conversation about volatility and the discomfort help it

especially has affected young people so younger people supposedly are much less invested the the prior generations of the same age. are you worried about that in the long term as well as what it means for the capitol market? >> we have to be very worried about and don't have the capacity to do that that are working and have to go back to work. i talked about the lack of the financial currency and i am sorry i didn't see it, arne duncan is talking about that issue and it's going to be very important for this generation to

understand how to invest safely and wisely and they are so attuned to social media influences that operate on them very quickly and investing is hard work and requires diligence and care and understanding and i worry about the interception of those two things. this instantaneous and i see it with my teenagers this instantaneous gratification so i worry about it from that perspective as well, but i do think that we have to deal as a nation a much better job of preparing our young people. it's great that they can do all the things that were elementary and secondary a tradition and a college education does for them but we have neglected as a

society to prepare them for this aspect. islamic to the have a role in that education? >> fnra does as well. it was out wants the largest foundation devoted to financial literacy. and i only half jokingly, and i served on the board, made the suggestion that we actually use all of the money in the foundation to hire a lobbyist and. if you can't do the basics you can't graduate. so you have to take the basics of english and history. i was half kidding. we have to have a national commitment to this and the fcc

has a role to play which has not focused as much although we have a program mr. bluster you were in high school teachers in for a significant amount of time in the summer and we train them and the basic concepts of investing as well so it's been a hugely successful program. they do recommend to their high schools and. we focus a lot of our resources on alert investors to problems as much as we do on educating them about the basis of investing. seóul warning i know about.

the fee structure were the other investments and try to keep people alert to ongoing scams and issues the need to know about. >> last two questions before the end. you mentioned social media. and clearly, in some ways a lot of your rulemakings or your. keeping up with a technology how do you score that circle? >> it's such a good question and it's hard. it relates to the question on the high-frequency trading and algorithms and dark pools. how do we take the 21st degree. all these new developments and that is the challenge and we are working through these issues to provide guidance where we can and should. some within the industry directly and ici as well

participates in that and it's just something though we have to stay really. we will always be guided by our firms have a responsibility because they did law giver house to educate investors, to promote services and products, and that responsibility that broker-dealers and others have had forever come face-to-face and traditional media applied equally and social media. >> to have two daughters you mentioned them a couple times. if they were to come to you and say i dream of being a regulator. [laughter] watching you has made this my life work.

on fell one hand i would be extraordinarily proud of them for wanting to be regulators because i do believe we have such an important role to play. it's absolutely critical for the functioning of the markets in the economy. so i would be enormously pearled and i would be little nervous about what they were taking on because the responsibilities are great and they can handle that. at the end of the day i would be an unbelievably proud of them if they could create some public service and i genuinely hope that they do. >> we are free honored to have you here. we appreciate very much what you

do. we know you have an extraordinarily difficult job, and we know that we may not necessarily always all agree that it doesn't change. [applause] following the meeting mary schapiro addressed a news the jpmorgan chase, the largest bank in the u.s., lost more than $2 billion in six weeks in a trading portfolio the bank uses to hedge against credit risks. the chairman responded saying, quote, it's safe to say all regulators are focused on this. the news comes.

the regulations which were part of the 2010 dodd-frank financial reform law don't go into effect until july of this year

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>> had the ambition to walk with john smith and pocahontas. i got here. pocahontas married use in this church 1614. i guarantee i stand a little deeper but this is where she stood when she got married. >> take the two were of the 697 jamestown colony there has been more than 1.5 million artifacts. visit the bree discovery lab and join in the conversation answering your questions.

>> today we have another of a series of events in russia brothers included one to examine the outlook of

relations with this transition and looking at the mood in russia on the of the elections and the trade implications to the wto. today looks at the domestic political scene and the outlook for the democratic opposition bursting into public prominence. russian politics has been seen to be a moving, motionless, a prose said or opaque. would buy a work at the moscow embassy was waiting for the death and the transition. it came during that perestroika years and for the decade that followed it was very boisterous.

there were days that us the watchers the vladimir putin marked aid transition away from popular politics back to the issue where those decisions made behind closed doors. it is with interest we observe the fascinating re-emergence of politics in russia. since last fall and those highly problematic elections that took place and the wave band wave of demonstrations that have followed. those of us that care found it encouraging the country seemed to have folded up from their slumber to speak out and act publicly on these important issues.

russians completed the resident -- election cycle with the preordained result vladimir putin was inaugurated on monday. after four year hiatus elected the prime minister. the putin regime will continue but the demonstrations continue as well. as the public sentiment that is less excepting and accommodating of arbitrary governance and corruption. to examine the nature of the current struggles, firebrand of voices of populism as president putin has sandoz subsequent issues faced today, we are pleased to look some vladimir kara-murza.

from the washington bureau chief and he was instrumental to organize mass protest after the parliamentary election and the protests that took earlier this week. mr. kara-murza bid is a bureau chief and earlier and editor-in-chief of russian investment review has written in "the financial times" and "wall street journal" and numerous books. he witnesses first and the events, his observations are of particular importance to this discussion today.

our moderator is dr. donald jensen manager at radio liberty in washington at the center for transatlantic relations. one of the most prolific commentators on russia appearing regularly on sea and eight -- cnn.com the fox and bbc and others. today's note to is on the record we will have a live the discussion and i hope you think of questions. wind called upon state your name and affiliation into a microphone. please join me to welcome vladimir kara-murza and dr. donald jensen. >> thank you very much.

thank you to the atlantic council for holding this with the time the bench. i'll look forward to lively discussion. quote one of the social is the juxtaposition showing the inauguration ceremony washington d.c. 2009 with tens of thousands of people lining up the national mall. the second to in moscow 2012 the city center deserted no single person and insight with armed vehicles lining the streets. the tv pictures coming out on monday you may have seen in the russian capital looking apocalyptic.

not a single person made in the motorcade but all central squares, streets, the crustaceans were shut down. outside the perimeter there were 20,000 troops and police birdieing that president elect. a centrally to think it is under dave manager occupation. but the protest we've had in the days after, i remember their put it -- the protest after the putin victory there were lines and lines of police buses lining up:to either side.

seven to may not the crisis of 93. ever look like it was not the behavior of a legitimate winner and election. of course, mr. putin is not the legitimate to win in the legitimate election. in march the vote was not free or fair on so many levels but the o'neill genuine democratic opposition candidate was removed arbitrarily by the authorities. on national television is under kremlin control. showing 72 percent at was given to putin and the rest was split before his competitors. attacks on the election monitoring groups and they

had balanced of fame and rewriting of protocols. on a much bigger scale was the carousel voting. people go from one polling place to another because the election commission's get the papers. in moscow there were 20% of people voted on the additional list. is an update beyond any control. that fielded several thousand across the country reported one quarter reported violations of various kinds and the

citizen observer project estimated seven or eight virtual votes, it is impossible to know. we do not know the results of the election on march 4th. that is the tens of thousands of people to central moscow to protest the illegitimate and an elected president. despite heavy efforts to prevent people from arriving there were trains canceled and buses canceled and about 60,000 people are arrived this by that and the response was on like then what we saw with a similarly you -- similar rallies but it was very harsh.

[inaudible] there was pepper spray used and batons and a video of a riot policemen kicking a pregnant woman in the stomach with his what. this s.a. direct quote smashing basis into the pep -- pavement dragging them by the hair regardless of gender or age. 50% were injured and more than 1,000 arrested with the official figures. after the protesters were walking down the street

having a cup of coffee. the police ransacked the cafe detaining them and release without no explanation. this was not good enough we heard the press secretary when asked for his reaction to how the police treated the protesters rethought it was not harsh enough. [inaudible] at the press secretary said that. if the anybody needed a preview of his attitudes, politically, this is as good as any. but that is not the main question. know he has not changed. but russia has. russia change beyond recognition within the last six months beginning in

december when 120,000 people came out to protest to demand a free and fair vote. largest troop been primarily by the end you're educated and people who have achieved certain well-being and one to live in a rule of law and be traded -- treated the citizens. not monkeys. note economic slogans or social demands. this is a movement for the first time but then he promised we would not come back and 100 years but it was 12 days after the first

major protest. they were forced to change john popo parties that to our starting to come back and the republican party banned 2007 was reinstated as a legal party. these are very intimidated concessions but the fact is mrs. the putin regime has done this in the 12 years of its rule. it will not go away. this is here to stay. the most reputable agency said the latest poll shows 38% of the russian population is supportive of the protest movement. that is a serious number.

the majority of people voted against pretend that is important to note to. this is very different than the one before. and with the center of research and with middlemarch by then no means this is a think tank to draft a the presidential program but the center calmat with a forecast saying their prediction is

the spread of the protest a new political crisis for parliamentary elections then putin himself struggling to come up with the exit strategy. there are those your doubting he could complete the six year term considering the current mood and situation proposing words of the strategy of the opposition. going beyond the street protests strategy although it has been effective those direct connections to reinstate in december presents a new opportunity although watered-down there

are several conditions to make it difficult to register. but even in the water down and manipulated condition elections of a great headache we have seen that in the merrill elections. just to run off the opposition candidate the consensus was not was said that kennedy but those voting against the regime. as they toured elections experts say they're likely to go into the opposition

call loan. been very controversial the opposition and later from where he was governor in the '90s where he was elected to parliament. for the party had a foothold and resulted local parliamentary elections so they have the power base. if we see key regions that is a game changer. one of the four most.

>> i also blood to thank the atlantic council and ambassador will send for spending time and during

those days i am emotionally attached as well. somebody said that it is a quiet cents napoleon entered the. [laughter] let me ask the first question. there are a number of narratives out there with people who are skeptical there is no natural opposition. i was there in 1989 when yeltsin and a rose to lead the opposition movement can you address that issue? to need elevator up their to fascinating characters who was a darling to attend the

inauguration despite having a campaign can you give a comment of the eight opposition that there is not a leader? >> the fact it has no vertical structure on like the kremlin it is a grass-roots base movement if you look at those who protest, there are leftist, socialist, and nationalist, rate to wane and a united movement of racing political prisoners to legalize and compete.

is advantage there is no set to once the regional elections began mentioning yeltsin he did begin his return to power we will see and they take place and to see those leaders emerging at the ballot box. nano the next is considered a double agent is more favorable to say he is clever and one of the first toots jump ship it in september he resigned because it was to our three

days after the announcement that was the major movement when they said enough is enough. you think you can hold them another tow bears? he jumped ship to three days later nobody considers and genuine opposition. >> is telling one was removed from the ballot and won was not and one was given the green light in terms of certain conditions millions of people directed into the column one of the

respective figures he urged people to vote to because of those conditions the only useful way to express a vote against the regime. and that is more or less like those places coming he came very close in second so it shows a protest vote but what we see now nobody has heard of them except on tv tv, those l.a. the people

that have heard the name mikhail prokhorov. >> please identify yourself from executive intelligence review what you say to the argument it is a matter of sour grapes from the opposition in the? thirty-eight% but they both continue to operate we don't expect to crack down or it a major shift. working with the new situation he seems is a buys

three council putting together his areas with his own weight if he is successful he will be more popular than he is today. the opposition has to deal with that. why is this so dramatic you think he will not last his term when he was elected a significant majority. if it doesn't he is in worse shape but then he looks better. you cannot just attack him because he did win the election.

>> thank you for the question. if you were beaten to blood with a baton you would not think it is a farfetched comparison. if you were thrown in jail 15 days per walking down the boulevard. the only difference between the two is near membrane the events of 2010 and the major crackdown he allowed genuine opposition figures. those who were just released from jail recently. he did rig the election but did allow opposition. mugabe all-out opposition but putin does not. talk abou