we don't know that yet, but when the did you first learn about these trades, chairman gensler? >> i would say that the trades came to i think many of our attention personal attention, with press reports. >> press reports. >> burt ot other staff was awar trades that the in the clearing houses because they monitor the clearing houses daily in an aggregate risk a and that the clearing house is fully -- collecting margin to protect a risk of the clearing houses. again, we don't regulate jpmorgan chase as a swap dealer yet. but we could reg late the clearing houses, and anti-fraud and anti-manipulation. >> did the cftc really know what was going on on such a large position that jpmorgan had taken here? >> well -- >> were you in the dark or did you know what was going on? you said you learned about -- >> it's in transition to speak about this. our oversight of the clearing houses give us a lot of window into the clearing houses which i think has 27 members in it, and the risks in that clearing house. the margin there. that's not the full jpmorgan picture, of course, they have a lot o

since last year chairman gary gensler over saw the largest consumer protection failure in the history of the cftc. under chairman gensler's watch customers of mf global had $1.6 billion of funds improperly taken from their accounts. the first and most basic responsibility i believe, mr. chairman, of the sftfc is to ensure that customer funds are not miss appropriated. yet despite all the new authorities conferred on the cftc by dodd-frank, the cftc was still unable to fulfill this primary responsibility to mf global customers. the cftc's failure's especially troubling here because the fund went missing during that time when it was well known that the firm was under severe financial stress and the risk of miss appropriation there was very high. even more embarrassing is the fact that there were numerous cftc officials onsite at the firm when the funds went missing. while i am pleased to see that mf global trustee is making progress in returning funds to mf global customers, chairman gensler, nonetheless owes the public, i believe, a full accounts of how they failed to protect those cus

gary gensler is with us. he says yes. he joins us in an exclusive interview. >> and commodities crushed in the month of may. oil down 13%, gold down 6%. someone here looking as if it's time to buy these dips? we'll talk about that coming up. >>> after the bell a double dose of insight into the state of banking when i speak with socgen america ceo. [ tires squeal, engine revs ] ♪ ♪ ♪ [ male announcer ] not everything powerful has to guzzle fuel. the 2012 e-class bluetec from mercedes-benz. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. >>> welcome back

chairman gensler? >> well, as derivatives and swaps regulator we're mostly going to be focused on the implementation of volcker rule with regard to swap dealers and futures commission merchants. i don't have as many views as chairman schapiro on the liquidity management piece, but if i could pick up on a second implied in there was, we received a letter from jpmorgan. all of us received, on our side of the regulators, in february, specifically saying that they thought we had to loosen up our widen out the hedging exemption. we're entrusted by congress to figure how to prohibit proprietary trading so taxpayers don't stand behind these institutions. but permit market making and permit hedge chicago helps lower risk of these institutions. so it's that challenge. it's not an easy challenge, by the way, but i think you were very clear. it's got to be tied specifically to individual or aggregate positions. and i think congress was pretty clear on that, and it's instructive to me that it was actually february

chairman gensler? >> i thank you. i applaud your efforts. >> we were in the conference committee trying to do the same thing. we failed in both cases. >> i think this is a good investment. i liken it to football if you're a football fan. imagine if all the sudden there's eight times the number of teams but no more referees. instead of having seven refs on the field, you have one on the the field. there would be mayhem on the field. there's sometimes mayhem in the financial markets anyway. hopefully with seven refs there's less of it. and the fans lose confidence, in this case market participants. ultimately you need corporate end users to have confidence, that when they enter the market, they can do it free of fraud manipulation. they can enter the market with speculators on the other side. it's not a bad word. but they feel the market is a fair and accurate reflection of the pricing. so we're way underfunded at the cftc. >> okay. i agree with your comment in reference to senator toomey, that even if you think capital

chairman gensler? >> i applaud your efforts in the dodd/frank act to get mary's agency self-funded. >> you were on the -- in the conference committee trying to do the same thing, but we failed in both cases. >> i think that this is a good investment for the american public. the cftc is funded at about $205 million. but i liken it to football. if you are a football fan, imagine if all of a sudden there was eight times the number of teams but no more referees and then instead of having seven rev refs you had one on the field. what would happen? there would be mayhem on the field. there's sometimes mayhem in the financial markets anyway. hopefully with seven refs, less of it. and the fans lose confidence. market participants in this case. and ultimately in these derivatives markets you need the corporate end users to have confidence that when they enter the market, they can do it free of fraud manipulation. they can enter the market with speculators on the other side. that's not a bad word, but that they

i would reiterate what chairman gensler said. if the dodd-frank rules had been in place when the activity was going on, these positions likely would have all been cleared, some substantial majority were or some substantial number were but not all were cleared. they would have likely been exchangesed, traded. they would have been reported to a swap data repository and there would have been detailed transparency to regulators and transparency to the public and i would say under the sec's proposed rules for reporting we would have know the trading desk and the trader as well who put the positions on. the dealer would have been registered and subject to business conduct standards, and they would also operate under the new rules for enhanced prudential supervision for bank homding companies with assets greater than $50 million so a number of pleases would be in place once the proposals are completed. >> chairman schapiro, can you commit to us that the sec will issue the last of your proposed derivative rules in the coming months and t

we talk to gary gensler, one of the people in charge of making the rules. and our summer travel series: fewer americans may take vacations, but those who do will likely spend more money. we speak with the c.e.o. of online travel site orbitz. that and more tonight on "n.b.r." from stocks to gold, it's been a miserable may for investors. the s&p 500 fell 6%, once again giving credence to the adage sell in may and walk away. but it wasn't just stocks investors were walking away from, gold also fell 6%. erika miller reports. >> reporter: stock investors are only too happy to say goodbye and good riddance to may. after all, the steep sell-off this month leaves the dow industrial average barely up for the year, after a record first quarter. so why was this month such a downer? >> once earnings season ended, people did not have a catalyst to hold onto stocks any more. they sold into it. >> reporter: and, of course, there are also growing worries the crisis in europe will slow global growth. it's not just stocks that had a terrible month. gold had its worst may in

morgan and this trading loss on credit derivatives but gensler says they didn't because j.p. morgan isn't registered as a swaps dealer yet take a listen but you're these are the only ones lee and there's nothing you know there's things that have not crystal in the regulatory function in well over such a big. the back is overseen by bank regulators but under dodd frank the market regulators as marker as we will stand up and oversee swop dealing activity in a bag or an affiliate of a bank or securities spacewalk dealing activity but you're right currently the american public is not protected in that way. and currently he says they have completed about house of the rules so far that they have been tasked with completing let's bring back william k. black he is breaking this all down for us and all of the problems with these rules and regulations still he's associate professor of economics and law at the university of missouri kansas city also played a major role and seeing that bad actors in the savings and loan crisis went to prison so really he's someone who has gone after some

chairman gary gensler is head of the futures trading commission. we appreciate both of you who have taken time out of your schedules to be with us today. please begin the testimony. >> i appreciate the opportunity to testify regarding the security and exchange committees implementation of the dodd/frank act. it creates a new regulatory regime for over the counter derivatives and the sftc to write a number of rules. title 7 is one of the many areas ranging from credit rating agencies to municipally adviser registration with the sec is charged with trading rules. the sec has adopted rules for over 3/4 of the more than nine provisions in the dodd/frank act. the commission has proposed almost all of the rules required by title 7. we are working diligently to coordinate implementation with the sftc and other domestic regulators. under the dodd/frank act, regulatory authority is divided between the sftc and the commission. the sftc has regulatory authority over the bulk of more the derivatives market. our role makings are designed to improve transparency

has lobbied hard to bring down the cost of complying with dodd- frank financial reforms, but gary gensler, a key regulator of the derivatives markets, argues there should be no special breaks for overseas offices of u.s. financial firms like the london trading unit that lost j.p. morgan so much money. >> yes, there are costs on financial institutions. yes, there will be differences overseas. but the bigger cost is if we let the american taxpayer be at risk. >> reporter: gensler also said regulators need to take a tough look at when a bank's risk management turns into a profit play. >> hedges to really be hedges generally lose money generally about as many days as they make money, because they are hedging something. the position is going up, the position makes money, the hedge loses money. >> reporter: republicans on the senate banking committee argued more rules will simply drive trading overseas. >> the better solution is, require more capital so we can let people do what they want to do. let the people in the marketace make the decision they will make, and then let them live with the co

. >> chairman gensler? zbr i said earlier i think this is one of the more challenging tasks the regulators have been given to ban, prohibit proprietor parading, permit market making, permit hedging. to your question about hedging. i think hedging really does have to lower risk. that's what congress wanted, i think in this provision. and they come and they do overlap. it's not a perfect circumstance. so it's our challenge among the regulators to do as congress said. to say if it's hedging a specific risk, individual or aggregate positions, okay. but we put in the rule proposal reasonably correlated. maybe that word needs more definition. i think it can start to morph and mutate when you have a separate desk and they have a separate profit loss, and they're motivated to at times take on positions or swing for the fences. for late bit of extra potential to have profits. my own experience on wall street is long ago. they sometimes worked for 18, 24, 36 months and then took a big loss, and they would be shut dow

chairman gary gensler is head of the futures trading commission. we appreciate both of you who have taken time out of your schedules to be with us today. please begin the testimony. >> i appreciate the opportunity to testify regarding the security and exchange committees implementation of the dodd/frank act. it creates a new regulatory regime for over the counter derivatives and the sftc to write a number of rules. title 7 is one of the many areas ranging from credit rating agencies to municipally adviser registration with the sec is charged with trading rules. the sec has adopted rules for over 3/4 of the more than nine provisions in the dodd/frank act. the commission has proposed almost all of the rules required by title 7. we are working diligently to coordinate implementation with the sftc and other domestic regulators. under the dodd/frank act, regulatory authority is divided between the sftc and the commission. the sftc has regulatory authority over the bulk of more the derivatives market. our role makings are designed to improve transparency

chairman gensler refuses to excuse himself from mf global. the public deserves more from their financial regulators. we need regulators willing to explain their actions. if there were failures, the responsible parties need to be held accountable for their actions. they had impeded congress's ability to examine every facet of the figure. i hope he will be more forthcoming about his involvement so that progress can begin to understand what role he played and how congress should respond. they have jointly created widespread uncertainty about the regulation of derivatives. according to a recent report, regulators have met only one third of the dodd frank deadlines and while there's no question that the rule writing process mandated by frank makes it very difficult to meet some of these deadlines the regulators share culpability here. although they have promoted new rules for derivitives they have still not proposed rules that clarify the definition of a swap. let me repeat that. almost two years after the passage. giving the cftc and fcc jurisdic

today attorney general doug gensler filed a motion to stay the court's decision. his spokesman says he will file an appeal to the u.s. supreme court if the maryland court of appeals does not reconsider. >>> the d.c. council today backed off a move that would strip mayor vincent gray of his right to appoint all three members of an ethics commission. he's more than two months late in making the appointments while ethics issues plague the city government. tom sherwood reports. >> reporter: the d.c. counsel sill was locked in fights over several issues tuesday. mental health funds. welfare benefits. taxes on investment bonds. restoring pay for furloughed workers along other budget issues but couldn't come to agreement on any of it. >> we have to be realisting. if we're going to do it we have to fund it. it has to come at the expense of something else. >> reporter: the council also put off tough action to get a new ethics panel in place. a setback for muriel bouser who wanted to pressure mayor vincent gray to make the appointments that are two months overdue. >> i thin

. >> commodity futures trading commission chairman gary gensler also testified and stressed the need to strengthen rulss to prevent risky trading. the senate banking committee called for the bank's cop executive jamie dimon to attend a hearing. >>> and now we bring you the weekly report from south korea. our reporter in seoul, sue choi, filed the following stories. >> reporter: business people are spending their lunch hours differently these days. they are not only enjoying time away from work but are pursuing hobbies or learning something useful for themselves. behind the change are some unique corporate strategies. this language school is located in seoul's main business district. during lunchtime, the school offers english and japanese conversation and other classes that are popular with business people. since this lunchtime program started last year, it has proven more popular than the morning and evening classes. every day as many as 130 students take these lunchtime courses. here office workers who have come to study on their lunch break can enjoy free food and drinks. today it

commodity futures trading commission chairman gary gensler and securities and exchange commission chairman mary shhero to shapiro, they found out $2 billion worth through media reports. the fbi, cftc and fcc are all conducting investigations into what happened and shapiro added the scp is focusing whether jpmorgan's reporting was accurate. the hearing from yesterday is two hours.

everybody's shaking down everybody this is the shakedown economy and that's all we have anymore gary gensler from the c f.t.c. said we're way underfunded at the c f t c and that's why we can investigate these blatant crimes like it takes a while you know whole team of investigators to see the dead bodies and the dead commodity traders and brokerages everywhere and then then they also quote mary shapiro from the f.c.c. who said we've been asked to take on very significant new responsibilities though that f.c.c. has made progress in hiring new staff person improving its technological capabilities she conceded that in some areas the efforts haven't gone far enough we're still way outgunned by the firms we regulate in terms of technology but i would say also the amount of bribes and kickbacks you're paying to congress people are obama as you say and also in the amount of you know violence against the markets you're willing to do because the bankers you're regulating are willing to take down the entire thing to in or. to get their way here's my shovel ready projects for america line up all the re

simply to obama's pursuit of phones from course on which all the it is a potential conflict but gary gensler at the chairman of the c.s.t. see also a close friend of course i mean he recused himself an essentially de facto recused the entire agency from from investigating corazon about four days after the bankruptcy so i mean this is a case where really there's a there's a big an intersection between government and wall street and i think when you talk about the revolving door. this this is it i mean this guy went from goldman to the governor to senator back to wall street where it blew up m.f. global and now there's one point six billion in customer madi missing. we've done our own criminal investigation and we think with information that's in the public domain right now it's clear clear crimes were committed here and all the farmers ranchers retirees traders brokers who have money in their home their heart and property that has not been returned home seven months later really haven't seen evidence. but we give them an investigation they need an impartial investigation and they have that's

i would reiterate what chairman gensler said. if the dodd-frank rules had been in place when the activity was going on, these positions likely would have been all been cleared, some substantial majority or some substantial number were, but not all were cleared. they would have likely been exchange traded. they would have been report today a swap's data repository, and there would have been detail transparentty to the regulator and the public. and i would say under the sec's proposed rules for reporting, we would have known the trading desk and the trader as well who put the positions on. the dealer would have been registered and subject to business conduct standards. and they would also operate under the new rules for enhanced prudential supervision for bank holding companies with assets greater than $50 billion. so i think there are a number of pieces that would be in place once all the proposals to implement dodd-frank are completed. >> chairman schapiro, can you commit to us that the sec will issue the last of your proposed de

gensler quite properly recused himself from this case but yesterday spoke out publicly for the firste saying, i do know some things about what's going on even though i've been remaining silent because of my prior relationship with governor corzine. you know what all of this spells? all of this spells need for special prosecutor, not connected to the justice department. martha: right. independent counsel. >> or the democrats, exactly. martha: the possibility that the house financial services committee is another arm that could be investigating this on their even, correct? i have to go. >> doing it on their own and they haven't. martha: judge, great insight to this. >> my pleasure. martha: we'll see where that goes. bill: the obama team unleashing more hits on governor mitt romney for his record at bain capital. you might be surprised how some of the president's top supporters are reacting to those hits. we'll tell you. martha: there is a huge story today. the new reports that the pentagon gave very sensitive intelligence to hollywood producers. why would they do that? peter king is ou

gensler, according to bart ch l chilton, found mr.ery tough foe when it came to changing rules. so they bent a lot of rules. rule 125, they were allowed to invest in europe. these are some of the allegations. do you have any more you want to add or comment op the ones i'm throwing out there? >> i think you hit on something that's extremely important. rule 1.25, july 20th, is when mr. corzine had a conversation, or a conference call, not only with the chairman gensler, but also then later with commissioner chilton, and that's the same day the cftc decided to pull those rules and put them on ice. but yet after the collapse, within five weeks of the collapse of mf global, they implemented those rules. that's exactly what i'm talking about that people don't have confidence. the other problem is no one's been speaking about the bankruptcy. when you look at the bankruptcy, 36,000 accounts were under the cftc's purview. only 318 were brokerage accounts. yet it didn't go under a cipa bankruptcy, not a cftc bankruptcy, which put all of the cus

and exchange commission, mary shapiro, and head of the commodity futures trading commission, gary gensler testified before the senate banking committee about financial regulations, derivatives, and the recent losses at j.p. morgan. our road to the white house coverage of the presidential campaign continues with a new hampshire speech on the economy by vice president joe biden. you can see that live at 1:45 p.m. eastern. >> i fight this is one of those markets where people vote for -- they don't vote for the party. this city votes for the candidate. you see more of that even though this is heavily republican, midwest, which is the dynamic and great but i think you are seeing more of that in the recent years here in the midwest. they are really voting a little bit more about what the person stands for. >> june 2 and 3, book-tv and american history to be exported heritage and literary culture of wichita, kan.. >> i want to show you the munger house. the only original remaining structure from 1860-8070 times. it was important in that it is a residence but it is also the headquarters of the wi

doreen gensler with a warning for women. >> jennifer lopez. kim kardashian. nicki minaj. all women known for their generous back sides. now some women are going to extreme measures trying to look like their favorite celebrities. including an illegal procedure that's leaving some women sick, disfigured, even dead. >> because i could have lost my life. i put my life in jeopardy. >> it really failed me. i wish i would have gone to a doctor. >> reporter: ashley and nicole asked that we not show their faces or give their full names. that's because these two baltimore women say they underwent an illegal medical procedure to get their back sides enlarged. >> it's like a secret society. so i basically had to no someone who knew someone. >> reporter: both women say on multiple occasions they went to hotel rooms and apartments in d.c., maryland, virginia and philadelphia where they had someone inject them with liquid silicone. it's called getting pumped. doctors say it's becoming increasingly popular. >> regular college students. housewives. working women. they'll come and they'll

mary schapiro appeared and chairman gary gensler. you saw him right there.ld the panel they're investigating the loss. >>> also on capitol hill, three senators announce their plan to introduce legislation that would remove bankers from fed boards. of course, that came up in this whole situation because jamie dimon is on the new york federal reserve board of directors. the senators say it poses a conflict of interests. sales of existing homes rose in april. 3% to 4% higher. the median home price, $177,400. that's up 10% from a year ago. so where are they going up the fastest? according to data compiled for cnn, here is where you should be looking. they're all in the western part of the country. madera, california, number one. oregon has three cities in the top five. it has been 292 days since we lost our credit rating. we ask every night what are we doing to get it back? i'll tell you this, if housing gets better, that will do it. it's the single biggest reason this country fell into what could have been a great depression. if housing prices go up, it will me

as we heard in the last hour here on the show, the cftc's gary gensler is pushing for more regulation in the wake of jpmorgan's trading losses. how has socgen been dealing with this requirement. craig overlander is with me, ceo of societe generale the americas. good to see you, craig. >> good to see you again. >> thanks for having us back on your trading floor. >> great to have you here. >> before i get to the regulatory side of things, have you seen evidence of greek individuals taking money out of greek banks and putting it into socgen, putting it into deutsche bank, other banks, the french and the german banks in particular? >> i just returned from paris on tuesday. wednesday morning, i was there monday and tuesday. and we see no evidence of any outflow, dramatic outflow, or leaving the banking system in greece. we see no evidence of it. there's movement of flow, but, in fact, our subsidiary has actually increased its deposit base since the end of last year. that being said, there's a lot of uncertainty around greece and you have to prepare for any contingencies, but we see no defi

cftc chairman gary gensler joins us exclusively to talk about that issue. and will the huge mess surrounding facebook's ipo make other technology companies gun shy about going public? both sides of that. and t.d. bank making a big push into the mortgage business. is it working? and is it another sign that the housing recovery is for real? we will ask ceo ed clark in our exclusive interview coming up. maria andly see you at the top of the hour on "closing bell." >> thanks so much, bill. >> we have a special treat here with us as well. we are honored to have lunch today with a bunch of armed services veterans, current members also reservists here. members of the navy, members of the coast guard, members of the marines. no army here today but part of nbc universal's salute to hiring. and we have hokie in the house. i like you best. >> at a time when everyone's in uniform, the uss wasp where we find our diana olick live. what does it take, diana, to run a really huge and amazing ship like that? >> well, mandy, the captain of the uss wasp says this is one of the