. >> mary schapiro: the events of may 6 scared people. they're...'t think there's any question about that. >> kroft: s.e.c. chairman mary schapiro had already proposed rule changes before the crash that would allow regulators to track and identify high- frequency trades, and she is now considering further measures. >> kroft: are you comfortable with computers making, you know, 50% to 70% of the trades on... on wall street? >> schapiro: 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... has behaved in an unexpected way on lots of other investors in the marketplace? >> kroft: and chairman schapiro says it's happened since the mini crash, even though circuit breakers were put in place that automatically halt trading in a stock that moves more than 10% in a five-minute period. >> schapiro: 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, causing a stock price to

. >> our guest gary schapiro, head of the consumer electronics association. here's what we're watching for next week. our friday market monitor guest is john dorfman chairman of thunderstorm capital. on the economic calendar, key readings on housing and the consumer with may's pending home sales index. the april case-shiller home price numbers and june consumer confidence. monday, we go beyond the scoreboard with our weekly look at the business of sports. new planes made by airbus will be covered in alcoa aluminum. in a $1 billion multi-year deal, alcoa will provide the jet maker with aluminum sheeting and alloys. airbus plans to use alcoa's products on virtually all of its commercial jets. those alloys are said to be 10% lighter than the composites being used by other manufacturers. it's back to jail for former media mogul conrad black. a federal judge today said black will have to serve 13 more months on his convictions for fraud and obstruction of justice. he's already served over 2 years for cheating shareholders of newspapers he owned out of money. last

mary schapiro of the securities and exchange commission.our fifth witness is gary gensler of the futures trading commission and the last witness is john walsh, acting comptroller of currency. we welcome our panelists and we will start with undersecretary brainard. >> thank you, chairman bachus and ranking member frank. i appreciate the opportunity. some would argue the united states is moving too fast on financial reform, that we should slow down and see what other countries implement. i don't agree. by moving first and leading from a position of strength we are elevating the world standard. with financial markets that are more globally integrated than ever we need financial reforms that are more globally convergent than ever. we don't need to synchronize across all issues there are a few key reforms that must be global in scope if they are to proceed. the risk of regulatory arbitrage carries real impact. it means a race to the bottom for standards and protections. it means potential loss of jobs in the american financial sector if firms mo

that's a good segue into the question. >> who has questions for mary schapiro? >> and i'm not going to comment. i think the sec does a fine job. [laughter] >> so there's been a general -- >> would you mind identifying yourself. >> i'm jeff campbell. there's more years to give more shareholders more voice in corporate governance and certainly several provisions in dodd-frank further move in that direction. as a cfo one of the challenges i find is that when i try to engage our shareholders who are under tremendous pressure to financially perform -- when i try to engage them in discussions around governance and proxy issues, they're often not interested and they say, jeff, i'm trying -- i need to understand your company and your business so i can make a decision whether to buy or sell your stock. that's what i'm going to focus on. as a result, a lot of them outsourced to independent agencies or to create very separate groups within the larger institutional shareholders that's somewhat independent of investment decisions, make decisions about proxy and governance, s

. >> honorable schapiro? >> i agree, there is of course always a risk of recurrent arbitrage. but it's also very significant consensus among the g20, among the financial stability board members who have put forward the recommendations come in for the g20 commitments about what needs to be done. i think particularly andy otc derivatives, and while we have a lot of consensus or read a lot of issues that are at you as chairman gensler knows, trading platforms and transparency regimes i was speak to in particular where we are not exactly in the same place. but that's what its home port forced to continue to push, to lead task force and workgroups of international regulators and to persuade others to come to very consistent requirements along with the united states. >> and, mr. walsh? >> well, i guess i would just add to what others have said that commitments have been made to achieve consistency. and if we succeed in achieving consistency in the derivatives area come in the capital area, and as governor tarullo put out if people i shall deliver on this commitments in comparable wa

thank you. >> chairman schapiro. >> thank you. i appreciate the opportunity to testify today on behalf of the securities exchange commission regarding the international implications of the dad-frank wall street reform consumer protection act. the act establishes a host of new reforms with implications to compete internationally. i testimony discusses a number of the reforms and other efforts to coordinate with foreign regulators and eliminate arbitrage. i want to focus on the over-the-counter derivatives marketplace. it's a global value of just over $600 trillion, yet otc derivatives were excluded from the framework by the commodity futures modernization act of 2000. title vii of the dad-frank act brings this under the financial umbrella requiring the ftc writes rules relating to among other priorities, the operation of execution facilities and data repositories, capital and large requirements, business conduct standards for dealers, and greater transparency of transaction information. these rules are designed to greatly improve t

[inaudible conversations] >>> securities exchange commission chairman mary schapiro spoke this week toporate executives at able street journal conference in washington, d.c.. she discussed the u.s. financial system and the implementation of new financial regulations. this is a half-hour. >> thanks, everybody. we will try to make this interesting. i am the editor of the investor which is of course the when you read first. [laughter] and we have the pleasure of talking to mary shapiro and she really doesn't need any introduction. the only thing i would point out from personal experience i was their working on the financial crisis, and there were a lot of people, serious intelligent people saying the sec would never survive, there would be no fcc after the financial crisis given the performance of the agency, mary's predecessor, during the financial crisis. the fact is the fcc is still here and mary has been a great job of removing it and expanding its capability and it is now past with a number of important and crucial tasks including of course writing the detailed rules in dodd-frank an

chairmen and ranking member raised about indian education and the data repositories that chairman schapiro and we have come together to try to wind away, thread the needle to lower that concerned of the europeans. so where we can we are looking to try to harmonize as best we can. to bring alignment, but also to make sure that our financial markets are strong and that the taxpayer still stand behind the large financial institutions as they unfortunately have. and a perverse outcome of the crisis is a lot of people in marketing its even more likely that taxpayers will bail these companies out because they are even larger. they are larger as a percentage of the economy now. and we did it once. we did it in '08. and that perception and title vii helps to address that in part. >> thank you, madam chair. >> thank you. senator chambliss. >> thank you, madam chair come and chairman gensler, i'd like, good to see both of you. mr. chairman, you recall leading up the debate on dodd-frank as well as throughout the debate, you and i had tons of conversations in my office and by telephone and in this co