. >> tom: also testifying today, securities and exchange commission chairman mary schapiro. she told the same panel her agency is looking into whether j.p. morgan executives hid changes to the portfolio's risk structure from investors. >> susie: walgreen's is going global. the nation's largest retail chain said today it's buying a stake in european health and beauty retailer alliance boots. walgreen's made the announcement on the same day it reported a disappointing third quarter. diane eastabrook has more. >> reporter: walgreen's says its stake in alliance boots will give it access to consumers in europe and emerging markets at a time when the drugstore chain's u.s. sales are slowing. walgreen's will pay $6.7 billion in cash and stock for 45% ownership in the swiss company. it could acquire the remainder of the company in a few years. the additional revenue generated by the deal could help offset lost sales from its recent split from pharmacy benefits manager express scripts. walgreen's blamed the lost sales for a miserable third quarter, which ended may 31. the company mad

the fact that mary schapiro, who is doing a terrific job down there is not able to reregulate that, when it's clear to me, from my experience, it needs it, is frustrating, because it's sort of the gridlock that occurs. now, in terms of glass siegel, there are many who say that wouldn't have stopped this downturn, lehman brothers was not a bank, fannie and freddie -- bear stearns which is the first one that went under, aig, that didn't fall under glass steigel. if you take a narrow definition, wouldn't have stopped what happened. however, if you broaden it out to say, let's not be so literal, the real issue is these institutions took on too much risk, quite frankly more risk than they understood. they didn't have enough capital, enough of a cushion in order to absorb the losses when they came through. in other words, they had too much -- you'll hear people talk about too much leverage, that's really the core issue. the core issue is not, are they proprietary trading over here, are they in all these kind of businesses, the real core issue is too much risk, not enough a capital cushion. and

mary schapiro took questions from members of the senate banking committee which is chaired by senator tim johnson of south dakota. this is an hour and 20 minutes. [background sounds] >> i call this hearing to order. today we will examine the health and stability of money market mutual funds, the impact of the 2010 reforms and the potential positive and negative consequences of additional proposed reforms from the perspective of the industry's regulator, the industry itself, users of industry's product and economic experts. i look forward to hearing the testimony and welcome -- [inaudible] as the committee continues its oversight of the financial markets. because we're anticipating a series of votes starting in many an hour, we're going to forgo opening statements from the committee's members in order to begin questioning of our witnesses. i will remind my colleagues that the record will be open for the next seven days for opening statements and any other materials you'd like to submit. i will also ask everyone to stick to five minutes for your questions. and today's first panel we hav

. >> my last question to you, sec chair woman mary schapiro said there could be violations and legal sanctions against the bank. how possible could that be? >> we have to wait and see because the sec is just conducting their investigation. that will focus whether the company properly disclosed any changes to the measure of risk and what the sec is focused on. >> still a lot to come out of this one. >> one quick quote. thank you very much. jpmorgan chase, the fourth best performer on the dow, up 2 3/4%. the best performer is bank of america. up 5%. you can see the banks hammered today on the dimon testimony. >> the same thing happened last week. as soon as the testimony wrapped up, jpmorgan was already gaining and got an extra pop at the end. >> in the question what dimon said we disclosed what we knew when we knew it, a key line basically him saying i knew we will be investigated on this. people should focus on that. there are questions what they knew and how they disclosed. >> a lot of questions still need answers. >>> in the meantime why don't we turn back to the markets. rick sant

chairwoman mary schapiro said today there could be grounds for legal sanctions against the bank. g-20 summit in mexico wound up today, with european leaders rejecting pressure for immediate action on their debt crisis. instead, they say they will pursue longer-term measures, such as integrating banking systems. meanwhile, in greece, the socialist party leader said political talks could lead to a new coalition government by tomorrow. it is expected to keep greek commitments under an international bailout. in pakistan, the country's supreme court dismissed the prime minister from office, touching off new political turmoil. the judges said yousuf reza gilani has not legally been prime minister since he was convicted of contempt in april. that came after he refused to investigate president asif ali zardari on corruption allegations. it was unclear when a new prime minister would be chosen. two days of nuclear negotiations between iran and six world powers have ended in a deadlock in moscow. the u.s. and other nations demanded iran stop uranium enrichment. the iranians, in turn, insis

chairman mary schapiro had already proposed rule changes before may 6th that would allow regulators tond tag high-frequency traders, and she is now considering further measures. are you comfortable with computers making, you know, 50% to 70% of the trades on wall street? >> one of the concerns is, if one goes wrong, if it operates in an unexpected way, given market conditions, what's the impact of that algorithm that has behaved in an unexpected way on lots of other investors in the marketplace? >> and chairman schapiro says it's happened since the may 6th crash after circuit breakers were put in place that automatically halt trading in a stock that moves more than 10% in a five-minute period. >> a number of times that those circuit breakers have been triggered has been because an algorithm operated in a way nobody intended for it to do, causing a stock price to go wildly out of range. >> the crash contributed to the crisis in confidence on wall street. since last spring, people have pulled $70 billion out of mutual funds. and the biggest concern of chairman schapiro and senator kaufma

earlier today, the sec chairman mary schapiro talked about money market funds. after her comments, the senate banking committee listen to comments from several panels. this is an hour and 25 minutes. >> i called this hearing to order. today we will examine the health and stability of money market mutual funds. the impact of two reforms and the potential negative consequences additional proposed reforms from the perspective of the industry itself and products. i look forward to hearing testimony and recommendations as the committee can tinges its oversight of the financial markets. we are anticipating a series of 11 votes, we will forgo opening statements from the committees and members in order to begin questioning of our witnesses. i remind my colleagues at the record will be open for the next seven days and any other materials you would like to senate. i would also ask everyone to take five minutes for your questions. the first panel, we have the chairman of the securities and exchange commission, chairman mary schapiro. please begin your testimony. >> i appre

[applause] ♪hi ♪ >> mary schapiro testified on capitol herehill today. that is that on c-span.n nancy pelosi and john maynard give their perspectives on a house oversight vote to hold eric holder in contempt over fast and furious documents. >> on tomorrow morning's "washington journal" and national journal correspondent discusses where u.s. financial markets are headed. univ. of baltimore law school professor examines the executive privilege claims concerning eric holder and the fast and furious case. then mark lopez from the howanic specenter and hispanics fair and employment and income. "washington journal" at 7:00 a.m. eastern on c-span. >> now the head of the securities and exchange commission testifies about money market regulations and risk. mary schapiro to questions from members of the senate banking committee which is chaired by senator tim johnson. this is one hour and 20 minutes. >> i called this hearing to order. today we will examine the health and stability of money market mutual funds. the impact of two reforms and the potential negative consequences additional p

then securities and exchange commission chairman mary schapiro testifies about changing money marketd regulations. >> tomorrow morning, a npr editor discusses with u.s. financial markets are headed. univ. of baltimore law school professor examines the executive privilege claims concerning attorney general holder in the fast and furious case. the talk about hispanics in the u.s. and how they fare in education and income. live at 7:00 a.m. eastern on c- span. >> have you approached book and your views differently? >> i think of them as gathering history. i think that interviewing when i am working for the news side as gathering contemporary information. >> how difficult is it to remain impartial that's correct i'm going to try as best as i can get people as people an understanding of what is happening in this campaign. it is not that difficult to put your biases to the side. like how social media change your line of work? >> twitter is that primary new source for anybody who covers politics are paid attention to politics. it did not exist four years ago for all practical purposes. >> t

darrell issa that in march of 2011, his letter to the securities and exchange commission chairwoman, mary schapirohelped develop the jobs act and modernize our securities laws. for instance, limitation on the ban on general solicitation, a rule that has been in place since the securities act of 1933. it will improve the ability of small, private businesses to communicate with investors and raise capital. creasing the private shareholder capital from 500 to 2000, the company may have before registering with the sec, it has been welcomed as a logical investment. visibly reduces the number of instances a company is forced to endure in sec process because they attracted too many accredited or institutional investors. title iii of the j.o.b.s. act they stop plesac -- they stop legislatio is based on company. after introducing the first round of funding bill in congress, reached out to my colleagues on the other side of the aisle to build a bipartisan coalition that we can actually enact this bill. to address the concerns of the interesting part. specifically, i want to commend congresswoman carolyn mal

and the fact that mary schapiro who is doing a terrific job down there not able to reregulate that, needs it, it's frustrating because it's the sort of gridlock that occurs. now, in terms of glass-steagall many say they wouldn't have stopped it. lehman brothers wasn't a bank. fannie and fannie hadn't come together in investment banking and banking. bear stearns, the first one that went under, that didn't fall under glass-steagall. a.i.g. wasn't under glass-steagall. glass-steagall wouldn't have stopped what happened. if you broaden it out to say, let's not be so literal, the real issue is these institutions took on too much risk. quite frankly more risk than they understood. they didn't have enough capital, enough of a cushion in order to absorb the losses when they came through. in other words, you'll hear people talk about too much leverage. that's really the core issue. the core issue is not are they proprietary trading over here. the real core issue is too much risk, not enough of a capital cushion and the key question today is, have we fixed that enough for the next downturn, are tho

other witnesses include the head of the securities and exchange commission, mary schapiro, and jerry ginsberg who chairs the commodity futures trading commission. but coverage first lorry the trickster to our morning at 9:30 eastern. the u.s. house gets there week started at 2:00 eastern. legislative work begins schapir0 on a number of landfills. tomorrow, the swearing in of ron barber who won a special election last week to fill the seat of gabrielle giffords. later this week, the bill mandating an increase in oil and gas production equal to the amount released from the petroleum reserve. but coverage of the house here on c-span. the senate is in at 3:00 eastern for more work on amendments to a farm bill proposal. the current bill expires at the end of september. at 5:00, they will consider the nomination of very tiger was to be a district judge in south carolina. this is set for 5:30. former alaska governor, sarah palin, was the keynote speaker friday at the right online conference this year in lost biggest. she criticized what she called the permanent media class for coverage duri

i think under the current chairman, mary schapiro, the sec has made enormous strides to improve things where their performance may have been lacking. but the one concern i have, and it is a continual one, is that very often people like to find a scapegoat for everything that goes wrong, and there is what i call a fair amount of bashing of the sec, much of which is unfair i think the important thing for people to do is recognize the importance mission the sec has and assist the agency in doing its utmost to fulfil its important mandate. >> host: a short question, but perhaps the longer answer. mr. pitt, do we need dodd-frank? >> guest: we need something. unfortunately i think dodd-frank was not the answer. we had a severe problem with our financial regulatory system. it failed us, and that is why we had the meltdown. dodd-frank was an effort to try and fix all that, but i think it was an inadequate effort. and i'm fond of saying only partially facetiously that god was able to tell the human race what it needed to do in ten commandments. congress told the financial services industry what