i am pleased to testify along with chairman schapiro and governor turullo. this is the first time we are appearing in public together at a hearing. it reminds me in 2008 that the financial system and the financial regulatory system both failed the american public. it was not one or the other but i think it was in fact a. the effect of that crisis reverberated throughout the american economies and the u.s., hundreds of billions of taxpayer dollars were put on the line to bail out the financial system. ultimately to secure the american public economy. but millions of jobs have been lost and are still lost. the the crisis has many causes, the unregulated swaps paid a central role and congress responded in passing dodd-frank specifically entitled vii to bring in transparency and lower risk in this swaps market. the cftc is working closely with the sec and other regulators to implement those procedures. we're coordinating our consultations internationally, and we have received thousands of commons from the public, both before we may propose rules and after we mad

schapiro? >> i think transparency is the critical piece you because of the last participants to understand, with respect to transparency at what price transactions have occurred. that will encourage price competition. there is a provision that will allow for block trades to be disseminated on a delayed basis so the concern about the potential for front running, a large position or front running the hedging of a large position should be able to be dealt with through the delayed dissemination. >> we are talking about making it more competitive. >> absolutely. >> now i just want ask you about the budget proposals. you've been urged to take more time but also be more thorough. at the levels that have been proposed in the budget that come out of the appropriations committee, mr. gensler, what effect will that have on your capacity to a comment what members of this committee are asking you to do? >> no. the number i believe was to take as from $168 million, continuous elation data $112 million. we wo

schapiro about advisers in making advice to government. there's a rule from january 6 that's of great concern, and i'll be in your hometown. >> thank you, mr. chairman. i'll make time to see you as soon as possible. >> i too want to congratlate you on your chairmanship. i appreciate your efforts in this difficult time. before i get to my questions on debit interchange rules, i do want to say the issues of regulation that senator moran brought up is a big one. i brought it up with members of this panel at least on four different occasions, and the inconsistencies with regulation and the time on my watch of community banks is a big concern to me. i don't know that consolidation in our financial system is a positive thing overall especially for rural america. that aside, i want to talk about the debit interchange rules, and chairman, it's an issue i'm very concerned about, and i was wondering is there any way to actually ensure community banks and credit unions are exempted in practice from this provision? >> i'm not -- i hesitate to get a fi

chairman mary schapiro says she won't be able to enforce the rules required by the dodd-frank reform law. >> we don't have the capacity now to take on the examination of hedge funds, for example. >> reporter: republican senators are concerned regulators are rushing to write new rules, and urged them to spend more time considering the potential costs to the economy. darren gersh, "nightly business report," washington. >> susie: here are the stories in tonight's "n.b.r. newswheel." investors shrugged off worries about inflation and rising consumer prices. the dow rose almost 30 points, the nasdaq added six, and the s&p 500 was up four. big board trading volume fell to 880 million shares, while nasdaq volume settled just below two billion shares. we're paying more to fill up at the pump and to stock up at the grocery store-- consumer prices rose four tenths of a percent last month. take out food and energy, and prices still went up two tenths of a percent. that's the biggest jump in over a year. jobless claims rose by 25,000 in the past week to 410,000, slightly more than expected. the

the hon national mary schapiro is chair of securities and exchange committee. she was appointed by president obama in january of 2009. previously, she was ceo of the financial industry regulatory authority. chairman schapiro served as commissioner of the fcc from 1988 to 1994 and chairman of the teacher's credit commission from 94 to 96. the honorable gary gensler is chair commodity futures and trading commission which oversees the options markets in the u.s.. chairman gensler previously served in the treasury department under secretary of domestic, finance, and assistance secretary of financial markets. in addition, he served as tenure adviser to the senate ranking committee. mr. john walsh is act comptroller of the currency. mr. chairman walsh assumed the position last august and previously served as chief of staff in public affairs. he has been with the occ since 2005 and prior to that was the executive director of the group 30. mr. walsh also serves with the senate banking committee from 86-92. i thank you for being here today. i regret that i had my surger

let meask chairman schapiro. god frank -- dodd-frank is a familiar term. less familiar as franken wicker, but it was an amendment that offering can and i authored, which passed actually in the senate by a vote of 64,5 with regard to the rating agency. as you know, there are many people, including me who feel that the rating agencies were one of the principal reasons that we encounter them out town in 2008. our amendments would have requiret securitize product to be signed for rating by the sec, rather than having the companies themselves shop around for their favorite rating agency. when we got to conference, the franken worker language was dropped, but in the final version, the law does require the fcc to implement a study on credit rating agencies and gives the effort we the authority to implement franken-wicker if it is deemed to be beneficial to the public's interest. so how is the study coming and what are your comments? that's right, senator. we have many studies on raising the agency, but this is important one. we should be doing that shortly with a

let me ask chairman schapiro. god frank -- dodd-frank is a familiar term. less familiar as franken wicker, but it was an amendment that offering can and i authored, which passed actually in the senate by a vote of 64, 35 wih regard to the rating agency. as you know, there are many people, including me who feel that the rating agencies were one of the principal reasons that we encounter them out town in 2008. our amendments would have required the securitize product to be signed for rating by the sec, rather than having the companies themselves shop around for their favorite rating agency. when we got to conference, the franken worker language was dropped, but in the final version, the law does require the fcc to implement a study on cred rating agencies and gives the effort we the authority to implement franken-wicker if it is deemed to be beneficial to the public's interest. so how is the study coming and what are your comments? >> that's right, senator. we have many studies on raising the agency, but this is important one. we should be doing that shortly

let me ask each of our witnesses today, first schapiro>> that wa? yes. i did have an opportunity to look at it. >> have you seen the study? >> i read this survey last night around midnight on the web. >> have you seen the study? >> i did read it, yes. >> can you tell us how effective regulation of the derivatives market can actually save jobs? >> i think that at the core, we lost over 7 million jobs in this country when the financial system and regulatory system failed. swaps were part of that. it makes the system safer for america. it helps end users have more transparency and lower competition in the marketplace. as long as we handle margin and many end-user issues, which we want to work with you on, transparency, competitions, and markets. >> mr. shapiro, i agree that failed regulation caused a lot of jobs. how can better regulation cause a loss of jobs? can you discuss a little bit how better regulation can save jobs? >> effective regulation can promote capital formation, which is the creation of jobs. when companies feel they can go to the market an

host: gary schapiro, author of the book "the comeback." guest: thank you. host: first an update from c- span media. >> secretary of state hillary clinton earlier said the changes sweeping over egypt and other parts of the mideast show how american policy makers are all in uncharted territory and that the fast-moving developments require u.s. officials to "be more nimble and innovative and be more accountable than ever before." she went on to say that the events in egypt and jordan and elsewhere shows how critical top leadership is on the ground and how the crown can shift under your feet. -- and how the ground can shift under your feet. she added that the u.s. risks being left behind if it is not on top of technological advances. the tribal center on terrorism says fewer u.s. muslims were accused in terror plot last year and 13 of the 20 were foiled before the big team -- before they obtained weapons. more than 2 million moslems live in the u.s. the senate is in session this week, and tonight, a freshman senators will dine at the naval observatory as guests

with that in mind, you have some snow beginning to schapiro in the north bay, could see some snowflakes >>> and welcome back t >>> welcome back to "the early show" here on a friday morning. i'm chris wragge along with erica hill. hopefully everybody out there is in a good mood. weekend right around the corner. >> it's friday. what more do you need? >> i know one guy that's probably not in the best of spirits. i think probably not too happy. just when you think charlie sheen might be getting his life together, it all falls apart once again. he called into a city radio show yesterday and just went off. a long rant that made not a whole lot of sense in a whole lot of places. cbs has decided to shut down production on "two and a half men" for this year, and who knows what's going to happen? >> that's the big question. >> he seems to continue to spiral. coming up, we're going to see what he had to say about his tv bosses and -- >> not the most flattering terms, shall we say. we will get you the latest on that because, trust me, plenty of people will be talking about it no matter where you fi

and assistant secretary for political military affairs, andrew schapiro will be in india this week. he will be accompanying commerce secretary gary locke and he will build on the achievements of president obama's november trip. the united states is seeking to increase significantly the volume and technical sophistication of u.s. defense sales to india. and finally since you have been tracking the flow of u.s. citizens from egypt, we had one flight over the weekend. and at this point it is our assessment that those americans, either official or private, who felt the need to -- or are part of the ordered departure have in fact left egypt. at this point, we are reducing our consular activity at the airport. american citizens that wish to travel to or travel from egypt now, we believe there are sufficient commercial opportunities for them to do that. >> just on that last point. the uss secure sarge had moved into the red sea and there was some discussion that it was for the purpose of evacuating americans from the embassy or had something to do with with the state department evacuation

let me ask chairman schapiro. god frank -- dodd-frank is a familiar term. less familiar as franken wicker, but it was an amendment that offering can and i authored, which passed actually in the senate by a vote of 64, 35 with regard to the rating agency. as you know, there are many people, including me who feel that the rating agencies were one of the principal reasons that we encounter them out town in 2008. our amendments would have required the securitize product to be signed for rating by the sec, rather than having the companies themselves shop around for their favorite rating agency. when we got to conference, the franken worker language was dropped, but in the final version, the law does require the fcc to implement a study on credit rating agencies and gives the effort we the authority to implement franken-wicker if it is deemed to be beneficial to the public's interest. so how is the study coming and what are your comments? >> that's right, senator. we have many studies on raising the agency, but this is important one. we should be doing that short

let me tell you about a 2009 survey that jake and schapiro and myself did. interviewed 6000 pakistanis. is a general example reflective of the four provinces which is very different from other polls you might encounter. now come i want to talk a little bit about this sharia stuff. every single poll shows that pakistanis cannot get enough -- and i love to ask my students in class what do you think sharia means? usually they talk about sony's and beheadings and shopping at fingers and whipping sam stone's would have you. we ask pakistanis what you think sharia is? they said sharia was good governance, lack of corruption, the ability to have justice served expeditiously and when i say that 90, 95, nagy presented people answered along those dimensions of sharia. what is that sound like? people want good governance. 50% of those people also said they thought it would be stoning and cutting off hands and so forth that i bring this out that the people in d.c. see sharia, they freak out. when i see sharia is actually a lot of people here who want the same things tha

economists is that it will start in the next 24 months >>> securities exchange commission chairman mary schapiro discussed the work for the agency and its plans to implement a financial regulatory law. known as dodd-frank which president obama signed last year. she said the continuing resolution which is currently funding the federal government has put a strain on her agency. treen shapiro spoke before the practicing law institute today. her remarks are 20 minutes. [applause] >> good morning. thank you very much, rob. that was lawfully, and i have to see that it is an equal honor for me to work with people like rob and meredith at the sec at this time we have so much on our plates. knowing you have a team other known to you that is indecipherable, talented, committed is really a blessing it is a pleasure to be here at the sec. i think each year this program gives me a chance to take stock of the previous year and reflect on what is yet to come. and as i keep you all know, last year was indeed a very busy one. so much so that i actually began to wonder whether we had never been busier, and i star

until then, sec chairman mary schapiro discussing the worker for agency and plans to implement the the regulatory law -- the continuing resolution has been a strain on her agency. this is about 25 minutes. [applause] >> good morning, thank you very much. that was really lovely. i have to say that it is an equal honor for me to work with people of rob and meredith's caliber at the sec at this time. we have so much on our plates. knowing there is a team that is indefatigable, talented and committed, it a really is a blessing. it is also a pleasure to be here. each year this program gives me a chance to take stock of the previous year and reflect on what is yet to come. and as i think you all know, last year was indeed a very busy one. so much so that i actually began to wonder whether we had ever been busier. i started to think about what it must of been like in the 1930's when the sec was established. clearly it was a tumultuous time. the shadow of the great depression hubbard. and the staff were certainly still mastering the various provisions of the new federal securities act of recen