decisionmaking is of little but consistent with thinking through things like investment decisions so i worry about it from that perspective as well, but i do think that we have to do a much better job of preparing our young people to be financially literate. it's great that they can do all the things that are elementary and secondary education and college education does for them but we have neglected as a society to prepare them for the cost of living in the real world. schenectady have a role in education? estimate we absolutely do and fnra education was at one time the largest condition to vote into the financial literacy and it may still be and i only half jokingly, and i serve on the board made the suggestion that we actually use all of the money

in the foundation to hire a lobbyist in every state and go to every state legislature and lobby for a financial literacy requirement in order to graduate from high school. if you can't to the basics you can't graduate like you have to stick to basics in english and history. >> obviously they didn't do that and they were right not to do it but i was only half kidding. we have to have a national commitment to this issue and this issue does have a role to play. we tend not to focus as much on young people ought we do have a program we started last year with high school teachers wear for a significant amount of time in the summer, and we train them at the sec on financial matters how does the bond market work and the basic concepts of investing as well so it's been a hugely successful program.

they go back home, they go back into their high schools and they teach the children either through existing math courses or to specialist financial courses. we focus a lot of our resources on alerting investors to problems as much as we do on educating them about the basis of investing, so warning them about the implications of volume foreign stocks and structure products or the fees' structure for mutual funds or other investments and try to keep people alert to ongoing scams and issues that the need to know about. >> last two questions. you mentioned the social media. and clearly in some ways a lot of your rulemakings for guidance that you are giving the industry is working hard to keep up with all of the technology.

how do you square that circle? >> it's such a good question and it relates to the question of the high-frequency trading and algorithms and how we 21st century market for 21st century media and make this 20th century regulatory regime set all of these new developments and that is a challenge, and we are working through those issues trying to provide guidance where we can and some in conjunction with fnra as well participated in some of that. it's just something we have to stay really a tune to and on top of as best we can. at the same time, we will always be guided by and large firms have a responsibility to input provided the employee media to the housing records, to be thoughtful about how the social media is used to educate

investors and promote services, to promote products, and that responsibility that the broker-dealers and others have had for ever face-to-face in the traditional media applies equally with social media. >> you have two daughters you mentioned a couple of times. if they were to come to you and say why dream of being a regulator watching you has made this my life's work. what wisdom would you in part upon them? >> on the one hand i would be extremely proud of them for wanting to be regulators because we do believe we have such an import controls to play in a smart and resilience and strong effective regulatory system is absolutely critical to the functioning of a marketed, and i

would be a little nervous about what they were taking on because of the responsibilities the good and all the criticisms were many and the spotlight is bright so those of things to think about i would be proud of them if they picked public service and i genuinely hope that the do. >> mary, we are very honored and we appreciate very much what you do. we know you have an extraordinarily difficult job, and we know that we may not necessarily all agree that it doesn't change the amount of respect we have for your chongging to get down and think you very much. >> thank you so much. [applause]

a look at the federal communications commission as the two commissioners prepared to join the agency that regulates communications by radio, television, phones, satellite and cable and overseas aspects of the internet. >> for the first time in nearly a year the federal communications commission will have a full complement of commissioners they were finally confirmed by the senate this week. the nomination hearing was held

last november. the chairman of the senate commerce committee, senator jay rockefeller had this to say. >> these are huge nominations come and they have a fast effect on the future of the country for better or for worse. i think it's hard to overstate the importance of this federal communications commission and its reach. >> here to discuss the nominations and the confirmations of the two fcc commissioners are two very well-known technology reporters, cecilia come amy shots with the "wall street journal." amy schatz, senator rockefeller seemed to hit this part of this was important and these nominations were important. what was his goal with that? >> welcome jessica worked with him the past five years so he had a vested interest in this in a way that was the senate commerce committee chairman

really don't but what you're looking at is that the really do want to have people in the commission it's harder for that place to find a consensus on things and you only have three bodies there so when you were looking at doing mergers or anything like it, you would like to have people in there so this has been holding us for awhile and and they were very excited to get through this week. islamic cecilia kang, what we know about jessica rosenworcel? >> we know quite a bit in what we have seen her for five years has mentioned, sitting behind a senator in many hearings and many meetings on the hills. she is colleagues to be there veteran. the fcc official. the new the policy inside and out and so they are not -- to your coming with this subject matter and what is interesting about them is they're coming at a time when the fcc is going through the tremendous

transformation from a legacy technologies and tsl internet to broadband and wireless, and in many ways represent this generation that sort of lived more so than other members in the past so they are coming not only with expertise but being kind of straddling the generation that's losing the transition to broadband internet. >> eni schatz and ajit pai they both worked in the senate, is that significant cracks skidded one of the things is different about ajit is hughes a brightly broad resonate. the work for german rockefeller for reviews and before that spent years of the fcc in various roles. ajit has a much bigger resume and that he worked more places and he's been in the litigation the past couple of years because

he couldn't do anything more but he was also a deputy general counsel, both republican and a democrat and had worked in a couple of different committees over on the hill so he brings a broad experience and he had more intellectual property experience than others said it will be an interesting mix but cecilia is right they are very young in their early 40's and will be interesting to see how the internet. islamic the nomination hearings were held last november. why has it been so long? remind us why we are here in may talking about there being a process. >> gup nominees, bachelet and an issue that didn't even involve them specifically. it was an investigation that another senator, senator chuck grassley had been pursuing the

trying to understand its decisions on the weavers and different permissions, senator grassley has been investigating this and he thought they were not cooperative and handing over documents related to the investigation and so to keep pressure on the sec, he threatened to withhold his vote pulled the nomination from the nominee going to the process heading into the agency, so the two essentials and got caught up in politics. >> how does that affect the work, the three commissioners for several months, michael copps leaving in january, etc.. >> i'm not sure if this has anything to do with the fact that they now just have more to do with the fact that they have an ambitious agenda right now it is certainly is something that

everybody wants to see by the commissioners over the agencies they like to have more people in the room to bounce the ideas off of and you like to have different people bringing in different perspectives when you talk about the conditions and things like that, so it's something the industry definitely wanted to have and the confirmation hearings there were not a lot of objections raised. >> with that said, there hasn't been a lot of activity and probably the biggest agenda is the incentive option going forward from the wireless spectrum this is also an election year and even though there's a full commission now you might not necessarily see a jump start at the agency ajit pai and rosenworcel joined commesso going forward and at the end of the reelection who knows whether there would be more shakeup.

they could see the transition into the treetops as well, so for the time being there may not be major changes in the agenda as well as much activity at all. >> cecilia kang mengin the options and senator snowe was a member of the commerce committee during the nomination hearing asked about that. >> one of the issues of course is the incentive option and i feel there's been a disproportionate alliance to the car reliance to provide and stand that the sec believes it would yield up to 5% of the megahertz. on the of your hand that is just a very small amount of what is krin to be required in terms of the demand in the wireless broadband triet so how best to deal of these technological innovations?

what should be done to establish a better approach than just relying on the incentive option? >> thank you for the question. i know the you have done a lot of work on this and i would say that we have a real demand for spectrum that would be foolish if we did is rely on the things like incentive options and the auctioning of the spectrum. we have to start devoting our intelligence, our resources towards developing better technologies that use the spectrum more efficiently and also studying the networks we can be more efficient with the networks we do have today. >> what time frame should that happen? >> it should happen immediately. >> can it happen immediately? speed is confirmed i could tell you that i would certainly make it a point of trying to do my best to do so. >> i also think that if i were confirmed i would urge the commission to do what ever to create remark that incentivizes that development as quickly as

possible. >> amy schatz? >> you're preaching to the choir. -year-old of incentive options these days but just in the way to come up with more spectrum for the wireless industry. the problem that really both of the commissioners are going to face is that they don't really foot the agenda at the fcc so they have to look at the issues the chairman asked and there is only so much they can do individually to push this forward but it is an issue that the agency is looking at. >> olympia snowe said she thinks there is too much reliance. >> seems like at least the commissioner agreed that there are so many other things to consider. there are a lot of different pieces to the puzzle trying to figure out how to get more spectrum out and one includes mergers as well. verizon is trying to buy spectrum from the cable companies and this is on the heels of the fcc decision to

block another merger that was big and created a lot of headlines scissors could be a lot of interest in the commissioners and where they stand on that merger going in. that is probably one of the biggest issues wall street is a way to look at right away and there's a lot of questions on how successful the options can be if the terms are right for broadcasters if they want to actually give up the spectrum for options. by that time they are actually put into place, the chairman may not even be there anymore. and jessica rosenworcel and ajit pai are adopting a plan they didn't conceive in many ways, so although the work on this quite a bit on the idea of the options on the hill there's a lot of questions as to how far this

goes, spectrum plans in general will pan out over the next couple of years given a lot of change. estimates when to take years to move to any kind of option planning it takes a couple of years at the fcc. the last time they tried was a couple of years and that wasn't anywhere near as complex as you are talking about or the broadcasters coming about whether they will do this. the whole thing is going to be very, very complex and she's right we may not see treen genachowski for much longer even as president obama is reelected. >> u-boats kind diluted to that that we may not see him as president obama is elected to a second term. are we hearing things? are there rumors going around? >> if you ask the chairman directly, and we both have come he would say he plans to fulfill his full term.

that said if you look back in history when this transition even if president obama again is reelected is oftentimes sort of a changing of the guard so that is widely expected and he served for four years. >> have we seen any leading by these to nominees for wireless or broadcast or any kind at preceded by yes? >> i haven't. i don't think people know as much about ajit pai as jessica rosenworcel, and even with jessica you're not really sure where she stands on this issue and if it were hurt that believed about the issue are being the stafford convene the release of her boss, whether it was the former commissioner for sherman rockefeller so in some ways they're both sort of a blank slate coming in and it

isn't obvious that the have any sort of way. ten years ago [inaudible] pai worked for verizon for a few years but left after that and it isn't clear if they really do. >> were there in the of the industries opposed to the two? >> the were was widely supported. spec the industry's? >> that's right, and i do think that ajit pai has a broad private sector background triet i think he represented the national cable telecommunications industry. it would be interesting to see if he has certain positions. when he was at the fcc he was a advising the chairman of the time on the serious mergers of his work the satellite as well as the condition so just because you work on an issue doesn't this is really mean that you have a conflict or that you have a particular bias. sometimes you are just being a

good soldier in delivering the policy goal of whoever it is you work for, the committee did you work for were the body so it would be interesting. there would be more questions after the private sector experience that ajit pai brings to the commission which will also be amusing because there are not a lot of commissioners that have worked in the private sector in the past and currently. >> senator jim demint is a member of the commerce committee, and another issue that the commissioners will face is the potential to reform. senator demint at the hearing back in november asked about that. >> do you think the fcc has the authority to expand the contribution based for universal service fund to the internet service providers? >> under the communications act, the commission has the authority on the interstate telecommunications services but

it has discretionary authority to also affect telecommunications services pachauri component of information services which could be described as broadband, so i think that is the state of the current statute and i would certainly commit to. >> using the internet services fall under the telecommunications? >> i think a portion of it could. i think at present it is by the interstate telecommunications services. i think the challenge going forward is making sure that the revenue base is strong enough to support the type of universal service reforms that the agency adopted last month. >> so you think that they now have the authority to assess the fees to internet service providers to fund the universal service fund? speed has the authority to assess the telecommunications not information services.

>> can you really defied the internet service provider that provides both? you're talking about assessing fees to part of their services and not to others. >> i apologize i am getting -- why don't i see it more simply. the current system is supported by a telecommunications services, long-distance services as we commonly know them. the challenge going forward is making sure that we've system that can support universal service in the areas. i think the the agency is going to need to look at the new systems like the ones the were proposed in the last administration that involve connections and not necessarily internet broadband services. >> mr. pai, any thoughts on the subject? >> i improve upon my colleagues reputation of the legal context with this question but i would say of course that the commission having recently released the service order and indicated that it intends to look at the contribution

mechanism next year and the commission should take a very close look at the nature of its statutory authority before assessing fees in a manner that you suggest. >> that was a jumble, wasn't it? and i think that it plans to the falls of the commissioners to be, it plans to this underlying question intention which is what is the role these days? what is the plate and the purpose? it clearly has the authority as the telecommunications services, but the roll over broad and internet services is under question and that is what creates a firestorm over the last few years is what is what is the ability to regulate eager the rate or the nondiscrimination statute or what have you on internet broadband providers they've taken place and currently are still in court on whether met

neutrality that seems so far and passe to the deutsch as a couple of years ago the was the hottest issue at he fcc these issues don't go away i don't think. as long as there is any sort of regulation over the internet service provider you will have some parties that say they don't have the ability to regulate and then you have others that say they absolutely do and others still say let's try to settle this once and for all and redefine how we are and rewrite the rules. so that's why, how it can carve out its agenda and execute its agenda when these basic questions are still being debated >> anything to add to that, amy schatz? >> it shows the difference between the commissioners.

estimate the commissioner spiegel seemed to come down on the side that the fcc does have authority to increase the base people can play. i'm not sure i a understand where she was going with that, but she feels like the had the authority to extend it to the internet whereas ajit pai was taking the i don't think the government should be in this approach and shows the ideological divide between them. >> where was senator demint going from that questioned? did he have an agenda? >> i don't think that he necessarily once the contributions paid for by the internet. >> senator amy klobuchar asked about the competition and mergers. >> what role do you think the fcc should plea to ensure adequate competition in the two medications market? >> i think it increasingly we

are going to see more and more intermodal competition is making sure more wireless spectrum is available so there can be more competition from wireless is a good place to start. >> senator i would build upon the answer and say to the extent the commission can do so it should make sure that the rules of the road don't differentiate between the technology is used. i think a lot of times the commission is dealing with regulations that apply to the telecommunications but not the cable providers, cable providers but not wireless providers and to the extent they are competing in the same space i think it's important to have a technological niche away with respect to the commission's rules to ensure everyone is competing on a level playing field. >> what have we learned from that video? >> it was something i can't use all throughout that commissioner rosenworcel had a very defined views on these issues because she's been doing this a long

time and is comfortable in the committee and in a lot of ways is getting to draft of her in a lot of these issues because there is actually quite broad support among these commissioners no matter what their party is and they fled the communication hasn't brought the technology. they are struggling to say about how to supply the rules in the technology and that is something the republicans and democrats can agree on. >> one thing i wanted to ask you about is he felt the rules of the road should apply uniformly across the different technologies. did i catch that correctly? >> i wasn't sure what he was referring to if he had anything in mind about the order but i think that goes along more with his general spirit of the support for the free-market and one thing you hear is by example deciding if certain big

companies shouldn't anticipate in an auction let's say and it that way you are picking favorites in the private sector. i think that generally most republicans would agree that it's better to let the market decide on these things come so i think it is more of a comment on the general free-market principles he has. i didn't know get much from that comment. >> what is another issue that the commission and these will be facing in the near future? >> i think the spectrum auctions its 20 long as we talked about before would be the biggest issue going forward. i think that neutrality will always percolate on the side as to what the authority is. there will be questions of media ownership going forward as to what the fcc rules is that still stands and if the commissioner would support trying to

reestablish that rule. i think one issue that is interesting going forward, and the commissioner rosenworcel's committee addressed this in the hearing is the role of the federal government in online video going forward with your bandwidth restrictions by internet service providers should be regulated in any way to its net neutrality rules. you have a lot of companies, you have companies like netflix from lobbying or increasing their lobby efforts to make sure that companies like there's don't get caught or suppressed and impose on the water line or the wireless site, so i think it is the sort of role of the internet service providers in the fight over the future of tv and online video is interesting going