chairman mary schapiro about why she let a former top s.e.c. lawyer take part in the bernie madoff case, even though his mother had invested with madoff. as darren gersh reports, the issue comes as the s.e.c. is asking congress for more money to police wall street. >> reporter: the man at the center of today's hearing declined to testify today. former s.e.c. general counsel david becker inherited money from his mother that had been invested with bernie madoff. becker disclosed that fact, but was still allowed to make recommendations about which madoff victims should be allowed to file compensation claims. darrell issa, the chairman of the house oversight committee, called that a mistake. >> i believe, as we look further into the becker matter, we're going to find the s.e.c. failed to have the highest level of care so that public confidence could be maintained. >> reporter: becker told s.e.c. chairman mary schapiro about the investment, and she said she expected becker would disclose the matter to an s.e.c. compliance officer, which he did. >> i

you'll hear remarks from the sec chairwoman mary schapiro and the agency's human-resources director. this is a little over two hours. >> the committee will come to order. i will start by reading the oversight committee [inaudible] primm of the principles first americans had the right to know the money washington takes from them as well spent. and second, americans deserve an efficient and effective government that works for them. our duty on the oversight and government reform committee is to protect these rights. our solemn responsibility as a whole government accountable to tax payers because taxpayers have a right to know what they get from their government. we will work tirelessly in partnership with citizen watchdogs to deliver the facts to the american people and bring them genuine reform to the federal bureaucracy and he. this is the mission of oversight current reform committee. today we are here for a hearing titled a joint hearing different financial management workforce, but in the financial service subcommittee of t.a.r.p., and starred on the oversight government reform c

hearing last week looking at internal management issues at the sec with testimony by sec chairman mary schapiro. you'll also here about the sec's budget and implementation of financial regulations during this two hour hearing. >> by reading the oversight government forum committee's mission statement. we secure two fundamental principles. first, americans have the right to know that the money washington takes from them is well spent. and, second, americans deserve an efficient, effective government that works for them. our duty on the oversight and government reform committee is to protect these rights. our column responsibility is to hold government accountable to tax pay years -- taxpayers because they have a right to know what they get from their government. we'll work in partnership with citizen watchdogs to deliver the facts to the american people and bring them genuine reform to the federal bureaucracy. this is the mission of government and oversight reform committee. we are here for a hearing entitled, a joint hearing between the financial management work force, between the financial ser

we have the honorable mary schapiro, the chairman of the securities exchange commission, mr. jeffrey risinger is the directer of the sec's office of human resources. mr. jonathan jack katz is the former secretary of the securities and exchange commission for 20 years. mr. steven krill especially serves as deputy chief litigation counsel from 1993 to 2001, and ms. helen chapman is the attorney representing approximately 350 investors in mr. bernard l. madoff's investment securities firm be. it is the policy of the committee that all witnesses be sworn in before they testify. please rise and raise your right hand. do you solemnly swear or affirm that the testimony you are about to give this committee will be the truth, the whole truth and nothing but the truth? the record -- you may be seated. the record will reflect that all the witnesses answered in the affirmative, and with that, i thank you. so we will begin at this time. chairman schapiro, i think you've heard members' opening statements, and we'd love to hear your comments about this conflict that has been discussed. >> t