mary mary why you bug and the reason i think about that is from mary shapiro as you see chair why is she bugging maxwell she's responding to critics s c c defends no wrongdoing settlement the chairwoman of the securities and exchange commission mary shapiro defended the agency's record of settling fraud cases with wall street companies saying quote people won't settle with us if they have to admit wrongdoing because it opens them to liability in civil damages lawsuits but because the settlements often carry terms that require a wall street firm to overhaul their compliance departments she said there is a deterrent effect. mary while you have both been. there is not a turn effect for one thing obviously because they don't stop committing the crimes number two they don't over all their compliance department they bribe the compliance department as i've explained on the show many times when i was working at paine webber oppenheimer shearson alex brown the first thing it is is you brought the compliance officer that's how they make their money they're in every office that's the key guy to

>> i think the first time, mary shapiro said something last week, looking at it, disturbed by the effects-frequency trading. as i understand it, if they dealt with the uptick rule that would do a severe blow to high frequency trading. i rather go that direction than putting a tax on trading. >> do you think that that is why we are seeing volume as low as it is, liquidity has been impacted, all because of -- >> it is a factor, but, look, there's -- memories are long in this business. i think 2008 was a very scary phenomena, very scary experience of most individuals and basically fearful of relieving that experience, so coming back, but coming back very slowly and probably fully invested at the wrong time. which brings me to the treasury. let me ask you about treasuries, you said treasuries a confiscation of capital. the low yield situation? >> 2% yield, the max in tax rate we will call 35%. let's say 40, keeping 60% of 1.2% after tax. i could do better than that. the rate of inflation might view somewhere between 2 and 3%. losing ground to inflation, after tax, after inflation. i think muc

mary shapiro head of the s.e.c.nt that she is worried that the ultimate price discovery that happens when it's all about speed isn't really about fundamentals. does that mean when i look at the price of stock xyz that i'm not seeing a reality? i'm only seeing a high speed compilation of a lot of movement in the price? this is a big issue. the other aspects are should the exchanges in the s.e.c. penalize what seems to be just another extension of computerized trading? in other words you'll never put the genie in the bottle. how are you going to control it? should it be controlled? the last issue is of course supply. today is the third leg of our supply streak this week. we had 2s, 5s yesterday. today we'll have 29 billion 7s. we don't suspect an issue but remember there is corporate supply, there are going to be issues with purchases next week with the ltro. this will be a very interesting auction. we'll be grading it at 1:00 eastern. back to you. >> all right. rick, talk to you soon. busy week in the bond market thi

mary shapiro says she is concerned about such activity.t of stock trading has to do with tiny practice moves than high-frequency traders are jumping on instead of the market fundamentals. the trading commission meets next week to consider new safeguards for companies of futures brokers in the way of the mf global collapse. customers could keep their cash at clearing houses instead of brokerage firms and others on keeping where money is and creating a fund to protect against losses in their accounts. >>> and rick san ttorum came unr heavy fire from his presidential rivals at a debate last night. santorum surged in the national polls ahead of the primaries and ten more contests in two weeks. santorum and mitt romney traded jabs object spending earmarks, federal bailouts and health care. it was the 21st gop debate of receipt son and possibly the last before a nom thee is chosen. >>> and the big stock winner of the day could be vivus. they surged on wednesday. an fda panel has thrown support behind the weight loss drug qnexa clearing the way f

frustrated by the lack of action on the part of all of us, the accomplice of action that i went to mary shapiro at the securities and exchange commission and said look, i can't do legislation right now. will you please at least post on the sec website where investors go all the time obviously to figure out if they are going to invest in private companies or not and private companies would have to simply say if they had been hacked into, period, that is all they had to say. not what subject but that they had been hacked into it. a desperate measure but it was a start. it had some affect. people are talking about that effect in washington. that doesn't interest me unless it is headed towards a bill. so i would like to get your take and perhaps director also and anybody else who chooses to speak on the pulse subject how you could ... the national security threat and we have no bill. we do have a bill what we have no sort of pervasive push to get this accomplished, not just the legislative. >> welcome a first of all i don't think that there is any question as the potential here and there is sort of

not many people realize this, but when she returned to the sec in january of 2009, it was mary shapiro's fourth appointment and a testament to your excellent justice in -- judgment that those appointments were equally divided. two were by republican presidents and two by democrats. her talent for understanding complex issues has been vitally important as we work to become more agile and a defective steering -- and affective during one of the most demanding moments in our history. she increased communication of all times and won broad support from elected and political leaders on both ends of pennsylvania avenue. she has brought not only a record number of enforcement cases but a significant number of actions involving highly complex and sophisticated transactions, including many are rising from the financial crisis. she launched a national program that combines more tactics with computer algorithms said rank risk, allowing us to effectively targeted examinations and protect investments. market stability offered by dog- frank, working around the clock to implement an unprecedented by dodd