i'm plead to have gary gensler at the table for the first time. welcome. >> good to be here. >> let's start with definitions. first, where you are. your term has expired. >> so i am the chair of a five-person commission. we each get five-year terms. >> charlie: right. >> which you're right, my sixth term was up in april. but under the laws, i'm able to continue to serve until the president nominates somebody else, or nominates me, and the senate gets around to doing their actions on that. so, in essence, i'm here well into, you know, 2013, depending upon, of course, what happens in november and so forth. >> charlie: if the president is elected, would you like to continue serving? >> i think public service is a great honor. i think the job we're doing at this agency is really critical. it matters to the american public, trying to complete this reform to lower the risk of these very complex markets to the american public. >> charlie: part of your job now is to define the regulations that come out of dodd-frank. >> it is, but within the law. congress

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

gary gensler, appreciate it. coming up, becky?r. >> i'm going to toss to you to intro andrew. >> he weighs in on tech deals like the union of e bay and skype. stick around, we'll be right back. ♪ ♪ [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's another reason more investors are saying... [ all ] i'm with scottrade. >>> welcome back to squawk. we have green futures across the board ahead of the market and ahead of the bernanke speech that starts at 10:00 a.m. eastern time this morning. getting back to sean parker, he's launching a new venture, "airtime" this weekend and one of the things i asked him was whether this deal was going to uppen skype. take a look at this. it's pretty interesting

gensler and what he testified here today and any way, any shape, form or fashion. >> i don't agree with him. i heard part of it, and i think the starting point should be that the united states is the best, widest, deepest, most transparent market in the world that had flaws. we should fix the flaws. we're concerned about some of these things making us not the best capital markets in the world and the best would make this the best business machine ever. the united states of america so we just want to get it right. it's not binary. it's not one thing. these are complex rules. we want to get it right so it works for america. >> thank you. mr.

gensler and what he testified here today and any way, any shape, form or fashion. >> i don't agree with him. i heard part of it, and i think the starting point should be that the united states is the best, widest, deepest, most transparent market in the world that had flaws. we should fix the flaws. we're concerned about some of these things making us not the best capital markets in the world and the best would make this the best business machine ever. the united states of america so we just want to get it right. it's not binary. it's not one thing. these are complex rules. we want to get it right so it works for america. >> thank you. mr. duffy. five minutes. >> thank you, mr. chairman. good morning. >> i think it's clear that we're not here because a private firm lost $2 billion. i think it is clear because many of the american taxpayers are concerned when big banks go bad and they're left holding the loss. it's one of these philosophies where we have capitalism on the way up, where you and your firm make a lot of money when you do well and when you fail we have socialism on the way d

financial agencies with gary gensler. a first, this news update from c-span radio. >> at 9:18 here are some of the headlines. states expect to add -- to collect higher revenues. this is according to a new survey out today by the national governors' association and the national association of state budget officers. the increase could increase pressure on states to lay off workers. modest growth have boosted sales and income taxes which provide nearly 3/4 of state revenue. many states are still continuing to struggle with budget shortfalls and some, not just california, are saying that a greater revenues only after raising taxes. the church of england is objecting to the government's proposal to allow gay marriage. in a document released today, it says that its historic understanding of marriage is that it is the union of a man and woman. the church of england says that case can already in germany the illegal benefits of marriage through several partnerships. -- that gays can already enjoyed many of the legal benefits of ma

gensler and what he testified here today in any way, any shape, form or fashion. >> i don't agree with him. i heard part of it. i think the starting point should be that the united states is the best, widest, deepest, most transparent capital markets in the world that had flaws. we should fix the flaws. we're concerned about some of these things making us not the best capital markets in the world, and the best capital markets in the world are part of what made this the best business machine ever, the united states of america, so we just want to get it right. it is not binary. it is not one tling. they're very complex rules. we want to get it right so it works for america. >> thank you. mr. duffy, five minutes. >> thank you, mr. chairman. mr. dimon, good morning. i think clearly we're not here because a private firm lost $2 billion. i think we're here because the american taxpayers are concerned when big banks go bad and they're left holding the loss. it is one of the philosophies we have capitalism on the way up where you and your firm make a lot of money when you do well and when you

her lawyer says she brought the drugs into the country because of threats made gensler son. >> she dohis one, not because of the money, but for the safety of her child. >> to rid this island of the scourge of narcotics, the authorities have in recent years made an example of foreigners found guilty of drug trafficing. the consequences are potentially fatal -- a spell on death row and execution by firing squad. rachel dougal is spending the night in hospital, but one that's enclosed by bars. nick brant, bbc news. >> latin america's largest rubbish dump, where thousands of people once made a living, has closed. at the landfill in rio de janeiro, 9,000 tons of garbage were once dumped daily. now it's shutting for environmental reasons. it got worldwide attention when it was featured in the documentary, "waste land." >> these are the thousands of people who have worked through the decades here. jarredin is portuguese for garden and this one is thought to be a grave. they're like gardeners. their job is to cultivate the dirt the >> many people refer to us as scavengers. we're not. we recyc

. >> good evening, everyone, i'm doreen gensler. >> doug, hour nine, is that right? tracking the storms? >> yeah, started after the 2:00 hour. nonstop from that point. the best news of the night. just about done. everything its moving out of the area. we continue to watch as the storms move on through. we talked line number one. line number two. line number one across delaware, and ocean city, getting hammered. line number two coming through. we saw a few storm warnings with this. but not nearly as many as what it was looking like a little earlier. very good news coming out of this storm. we'll take you in, show you what is happening now around the area. anne arundel, prince george's county, fairly heavy rain right now. around bowie, crofton, southgate, annapolis, you will see fairly heavy rain continuing on through out the evening. something else to mention. notice the yellow shaded counties here. those are where we still have a tornado watch in effect. in effect until 2:00. but they continue to shave this back. so i expect these to be dropped at any time. we do how

gensler? >> if we were standing up our reforms for credit in derivatives -- even this ig9 one is in there. >> mr. alvarez? >> we were informed of the same time they informs o ted the occ. >> i want to go forward to april 13 when jamie dimon said this was blown way out of proportion. did you find his comment interesting? the fact that these regulators were activating some action? >> we were still trying to determine the underlying strategy and ramifications to the bank's financial position. >> would you call that the tip of the teapot? >> i would not have had information at the time to make a conclusion one way or the other. >> mr. shapiro -- ms. schapiro, do you have a comment? >> the number really did not change for the earnings release. if you choose, you must be truthful and completely. the number did not change much at all from your end to the earnings release and that as part of the context. when the q1 statements came out and we saw that the numbers doubled, it is part of the context of

gary gensler will take your questions about the role of his agency.washington journal" live on c-span every day at 7:00 a.m. eastern. >>> nato's supreme allied commander for europe and special assistant to president obama also spoke at the u.s. aid conference. they discussed nato challenges in libya, somalia, and afghanistan such as the balance of military power and development work, famine, and the rise of social networks and activism. this is a little over an hour. >> good afternoon, everybody. i'd like to first start by reminding everybody that in your folders you have those crowd hall cards. and we welcome people going online to browse the panels, submit your questions, and vote for your favorites. look for the cards in your folders. great to see everybody here this morning and it is my great pleasure to introduce our next speaker. the first time that i met admiral james steverides at a dinner, his first question is whether i read prous or not. which is how i knew he truly embodied the idea of a soldier-schooler and statesman. he has decades of ex

by chairman gensler implies the rules are inadequate and threw the g will have 20 our regulators have coordinated fairly closely. do you feel that there is a need for us, the sec is about to come out with its ruling on extratorial active. do you feel that we need to have some sort of regulation that we apply to our subsidiaries? >> no. i've been clear. i think the foreign laws should apply over there so we can compete fairly over there. they were always regulated. the occ and the feds, there's potential regulation at the top. and the trades we are clot ralized, 60 cleared. i think some of those rules wouldn't have mattered at all. aig keeps coming up as an example, aig was insured only, they weren't trying to hedge anything. aig was an insurance company. aig didn't understand credit derivatives. they were not mark to market and for the most part not collateral. completely different example and a different industry. >> and an enormous level of risk. but you cannot map that situation on to the morgan situation. and now clearly, sir, there have been questions about the activities of risk

so see you have to see the commodity futures trading corporation which is by the way run by gary gensler a former goldman sachs guy says two wrongs make a right if you commit to greed just criminal actions then passed all fine and by the way that money will probably end up on the positive part which bank and you can continue doing what you've been doing in the criminal justice system if you're involved in a conspiracy it's always worse here the c. of t.c. is noting that this conduct occurred regularly and was pervasive in addition the attempts to manipulate included barclays traders asking other banks to assist in manipulating europe or as well as barclays aiding attempts by other banks to manipulate u.s. dollar live or in europe or in addition certain barclays euro swaps traders led at the time by a senior trader coordinated with an aided and abetted traders at other banks in each other's attempts to manipulate europe or even scheming to impact europe or on key standardized dates where many derivatives contracts are settled or reset but it's racketeering they're bringing in other banks

he is gary gensler. it chairman, thank you for joining us.how to explain about your organization and what it does? guest: we have two market regulators. you may be more familiar with the securities and exchange commission. president roosevelt requested another to see the commodities market. it is a department of agriculture. we overseas markets for contract that help people locked in a price. originally it was for corn and wheat. a farmer and wanted to lock in a price of their corn or wheat at harvest time. later, complex products. it is today known as a swaps which is part of the problem in the 2008. it is a bright light shining in the market. just as there are in a securities market. host: can you explain the role of derivatives and its role in the market? guest: derivatives include both the historic product called futures and the more recent product called swaps. it is a vast market. it is measured in size over $300 trillion. there is over a $15 of trevelyan's for for every quarter in the economy. that is just the swaps. why does it matter

gensler. gentzler. this heat wave will be with us for a while.ns us. >> those temperatures doreen definitely heated up. we start

gensler said earlier today, not many things he said i agree with, one thing he did talk about advantagerope has being in a time zone between asia and the u.s. there have been a lot of questions why certain trades go to london. i know you need to follow your customers who are global, too. isn't there some vappiadvantage that time zone? >> thank you. your time is up. i think the answer was yes. >> yes. >> mr. scott for five. >> thank you. good to have you. >> we will take a quick break. the market has added on significantly to its advances, up 150 points on the dow jones industrial average and the yield on the 10-year is creeping up as the money flows out of the bond market into the stock market. oh, somebody out there's saying, now i get it! take beano before and there'll be no gas. to provide a better benefits package... oahhh! [ male announcer ] it made a big splash with the employees. [ duck yelling ] [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. ♪ ha ha! >>> back >>> back at the new york stock exchange. the stocks are higher, dollar is

they do that kind of thing all chairman gensler implies the rules are inadequate and threw the g will have 20 our regulators have coordinated fairly closely. do you feel that there is a need for us, the sec is about to come out with its ruling on extratorial active. do you feel that we need to have some sort of regulation that we apply to our subsidiaries? >> no. i've been clear. i think the foreign laws should apply over there so we can compete fairly over there. they were always regulated. the occ and the feds, there's potential regulation at the top. and the trades we are clot ralized, 60 cleared. i think some of those rules wouldn't have mattered at all. aig keeps coming up as an example, aig was insured only, they weren't trying to hedge anything. aig was an insurance company. aig didn't understand credit derivatives. they were not mark to market and for the most part not collateral. completely different example and a different industry. >> and an enormous level of risk. but you cannot map that situation on to the morgan situation. and now clearly, sir, there have been questions

gensler. did the legislation that passes committee on territoriality were to become law, one is in the agriculture committee and they pulled the addendum at that have become law, what would be effective in on the transactions of jpmorgan chase? >> i think it would be a major retreat from reform and as i understand the trades were executed in london in the branson they would not be covered. >> if i were to become law those traits in london would be totally outside the supervision and so insofar as her of it is than they would be subject to bank supervision but they would not be subject to anything about derivatives. >> i believe so. depends on how one provision in that statute is interpreted by guess i believe so. >> and if the provisions of the reform act were fully implemented and they been held up because you had that 3-2 situation and you have comments from -- a couple of time. if you don't edit them carefully and don't get them to enough people to read them so it's hard for me to be upset

gensler and what he testified here today in any way, shape, form or fashion. >> i don't agree with him. i heard part of it and i think the starting point should be that the united states is the best, widest, deepest, most transparent capital market in the world that had flaws. we should fix the flaws. we are concerned about some of these things making us not the best capital markets in the world and the best capital markets in the world would make this the best business machine ever, the united states of america. so we just want to get it right. it's not binary, it's not one thing. these are complex rules and we want to get it right so it works for america. >> thank you. mr. duffy, five minutes. >> thank you, mr. chairman. mr. dimon, good morning. it is clear that we're here because many of the american taxpayers are concerned when big banks go bad, they're left holding the loss. it's one of these philosophies where we have capitalism on the way up where you and your firm make a lot of money when you do well and when you fail we have socialism on the way down and the taxpayers bear the

gary gensler spoke the other day about the differences that they have between his regulatory agency and the sec. it seems there's foot dragging. the major financial interests want to stall. the banks are not investing in our economy any more. where's the money going? guest: let me try to pick up on a couple threads of what you said. i think there's a great deal going on in washington in terms of changing the system. i appreciate the fact that from the outside it looks like it's not happening quickly enough. i would say we are interested in getting these things right, making sure there are tougher rules and they are enforceable and workable, that we preserve the good things about our financial system but we get rid of the things that create. unnecessary risk so i think the important message i would send is we are very vigilant about the rule-writing process and changes that are taking place. we think that banks need to be held accountable. we understand that investors -- the public has had a very big shock and are very concerned. they need to have confidence in our financial markets and

gensler and what he testified here today in any way, shape, form or fashion. >> i don't agree with him. i heard part of it and i think the starting point should be that the united states is the best, widest, deepest, most transparent capital market in the world that had flaws. we should fix the flaws. we are concerned about some of these things making us not the best capital markets in the world and the best capital markets in the world would make this the best business machine ever, the united states of america. so we just want to get it right. it's not binary, it's not one thing. these are complex rules and we want to get it right so it works for america. >> thank you. mr. duffy, five minutes. >> thank you, mr. chairman. mr. dimon, good morning. it is clear that we're here because many of the american taxpayers are concerned when big banks go bad, they're left holding the loss. it's one of these philosophies where we have capitalism on the way up where you and your firm make a lot of money when you do well and when you fail we have socialism on the way down and the taxpayers bear the

gary gensler spoke the other day about the differences that they have between his regulatory agency andec. it seems there's foot dragging. the major financial and it interests want to stall. the banks are not investing in our economy any more. where's the money going? guest: let me try to pick up on a couple threads of what you said. i think there's a great deal going on in washington in terms of changing the system. i appreciate the fact that from the outside it looks like it's not happening quickly enough. i would say we are interested in getting these things right, making sure there are tougher rules and they are enforceable and workable, that we preserve the good things about our financial system but we get rid of the things that create. unnecessary risk so i think the important message i would send is we are very vigilant about the rule-writing process and changes that are taking place. we think that banks need to be held accountable. we understand that investors -- the public has had a very big shock and are very concerned. they need to have confidence in our financial markets and

disclosure could have flagged the losses earlier for regulators and management and from the cftc gary gensler about the derivatives behind the losses. as for jamie dimon, he is in the building and expected to start testifying at 11:30 today. outside of the hearing room there are said to be protesters that have been kept fairly quiet. we'll bring you all the details when mr. dimon starts testifying later today. back to you. >> we think 25 minutes but presumably that could move back, mary. >> reporter: about 25 minutes or so and the hearing is expected to go sometime between 2 and 2:30. >> thank you very much for that, mary thompson live as we prepare to tap into what jamie dimon has to say. break back to microsoft's launch last night, julia bore steen was there for the unveiling of the surface and she joins us now. julia, let me ask you a very simple question. would you buy it? >> i want to know how much it costs, simon. i can't tell you if i would buy it until i know how much it costs and how much the data plan would be. the real question is whether or not it plays my macbook. i have a macboo

host: gary gensler joining us for a discussion this week. cftc.gov is the website. do not forget, if you want to watch this or any of the series so far, you can go to our web site, c-span.org. with the former head of [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012] host: we are momentarily going to go to the house. hearingll go off to the on oversight with eric holder. c-span.org and c-span video library available to you. that's it for "washington journal." the speaker pro tempore: the house will be in order. the chair lays before the house a communication from the speaker. the clerk: the speaker's rooms, washington, d.c. june 12, 2012, i hereby appoint the honorable mac thornberry to act speaker pro tempore on this day. signed, john a. boehner, speaker of the house of representatives. the speaker pro tempore: the prayer will be offered by the guest chaplain, reverend dr. allen karenen, office of the united states senate chaplain, washington, d.c. the chaplain: let us pray, lord god almighty in the mids

gensler and what he testified here today in any way, shape, form or fashion. >> i don't agree with him. i heard part of it and i think the starting point should be that the united states is the best, widest, deepest, most transparent capital market in the world that had flaws. we should fix the flaws. we are concerned about some of these things making us not the best capital markets in the world and the best capital markets in the world would make this the best business machine ever, the united states of america. so we just want to get it right. it's not binary, it's not one thing. these are complex rules and we want to get it right so it works for america. >> thank you. mr. duffy, five minutes. >> thank you, mr. chairman. mr. dimon, good morning. it is clear that we're here because many of the american taxpayers are concerned when big banks go bad, they're left holding the loss. it's one of these philosophies where we have capitalism on the way up where you and your firm make a lot of money when you do well and when you fail we have socialism on the way down and the taxpayers bear the

plus cftc chairman larry gensler. don't miss "squawk box" tomorrow. >>> welcome back, everybody. if you're just waking up, look out. there's a surprise this morning. we're actually looking at the dow futures up by triple digits. those dow futures up by 107 points. s&p futures up by almost 1%. in our headlines home depot is out with news. the company says it expects its 2012 share buy back to be about $4 billion, up $500 million from its prior guidance. >> today's national forecast, alex wallace is joining us from the weather channel. >> we got more in the way of rain this morning in the eastern part of the country, this morning stretching across parts of northeast some light showers moving across new york state. heavier rains, those carolinas, back down through georgia and even into florida where we're tracking stronger storms there. active weather here into texas, we're fining out this morning between lubbock and san angelo. heavy rain and more activity off to the north, northern parts of the plains all in association with the storm system that's hanging out there in the western

host: gary gensler joining us for a discussion this week. cftc.gov is the website. john cobb on eric holder to resign for the handling of probes into a federal gun investigation. that hearing its next on c-span. hillary clinton expressed concerns that russia is sending helicopters to syria to help the president stay in power. later, a discussion on national security and the federal budget. >> this weekend, it marked the bicentennial of the war of 1812 mmchenry. mcinerne also this weekend, more for my series on key political figures. it is sunday at 7:30 p.m. american history television this weekend on c-span3. >> next, eric holder testifies about his handling of the fast and furious investigation and his decision to report u.s. attorneys to investigate national security leaks. he said he has no intention of stepping down after several republican lawmakers called for his resignation. patrick leahy is chairman of the senate the judiciary committee. this is two hours and 55 minutes. >> is everybody here taxable let's set grassley get in. i think everybody will give as