i think chairman schapiro said it very well. one thing i would add is this concept of portfolio hedging can mean different things to different people. i think what congress said, it has to be tied to specific risk of individual or aggregate positions. and this experience reminds us maybe we have to go back and it maybe is tied to certain positions. it's not sort of like we think revenues will go up or we like the european debt markets these days. and one thing that, from my experience is these things sometimes morph or mutate into something else, particularly when set up as a separate business unit and separate compensati compensations. hedges generally lose money just about as many days as they make money because they are hedging something. the position is going up. the position makes money. the hedge loses money. if the position goes down, vice versa. you set it up as a separate unit. maybe in a different country. different leadership. you start to -- it's prone to morph. >> i guess one of the -- just initial reaction and that

i am pleased to testify along with sec chairman schapiro. today i am going to speak to the three topics of your invitation letter. first, where is the cftc on swaps market reform, second, the role in overseeing markets for credit derivative products such as those traded by j.p. morgan chase's chief investment office and international progress on swaps reform and related issues of cross border applications. i also welcome ranking member shel shelby's questions and look forward to chatting about that in public as well as i would in private with any members. the cftc is a small agency tasked with overseeing the futures markets and now with passage of dodd-frank a market nearly eight times larger the swaps market. given these new responsibilities we're significantly underfunded but you heard me say that before. our market oversight critically relies on market participants foremost complying with the laws and related rules and then the self regulatory organizations like the cme and the national futures association that provide the first line of o

chairman mary schapiro is the head of the u.s. securities & exchange commission. chairman gary gensler is head of the commodity futures trading commission and we appreciate both of you taking time out of your schedules to be with us today. >> as you know, title 7 creates an entirely new regulatory regime for over-the-counter derivitives and directs the commission and the cftc to write a number of rules necessary to implement it. of course title 7 is just one of the many areas ranging from credit rating agencies to private funding municipal advisory registration to specialized corporate disclosures where the sec is charged with writing rules. the sec already has proposed or adopted rules for over three fourths of the more than that mandate rule making and finalized 14 of the more than 20 studies and reports that the dodd-frank act directs us to complete. the commission has proposed almost all of the rules required by title 7. we're continuing to work diligently to implement all provisions of title 7 as well as the many other rules we're charged with drafting and to

something will give. >> do you have any comment on that, chairman schapiro? >> i think the clearinghouse is obviously to the extent these instruments are mandatorily cleared will have clearance into early warning levels, concentrations by particular firms and be in a position to adjust the margin requirements to account for that. >> i might add the clearinghouses, the two main clearinghouses which is caught in the u.s. and in europe has a concentration where when positions get large, they actually add additional margin on top. and without getting into details, you can imagine what happened here. >> so we'll have additional five-minute rounds with senator shelby. >> i would like to go back to mf global if i could, mr. chairman. chairman, gensler, i'm referring to. this committee, the banking committee's due diligence has revealed to a lot of us that you played an active role in the oversight of mf global during the week leading up to its failure. we would like to know how many conversations did you have with jon corzine during the mf global's final week. and d

. >> securities and exchange commission chairman mary schapiro says the agency continues to implement dodd-frank. she spoke at the annual investment company institute's general membership meeting in washington on friday. other topics including proposals to tighten regulations on money market funds and market volatility and financial literacy. this is about 45 minutes. >> good morning, everyone. warm welcome to you all. maybe like me you still have beatles tunes buzzing around 234 your head from a great night last night. we're heading into the final session of the 54th annual general membership meeting and especially privileged to have mary schapiro, the 29th chairman of the united states securities & exchange commission here to provide a regulatory update. our format this morning is a q&a, and i am pleased she is the hardest working person at the gmm, melody hopson, our gmm chair will serve as the questioner. we're eager to get to their conversation but first permit me to say a few words about chairman shapiro. in short she's had a remarkable career as an effective regulator and extra

chaired by chairman schapiro. the s.e.c. upheld fnra's determination and mf global publicly reported the deficiency in august of 2011. when did the cftc first learn that mf global had a capital deficiency. did you learn it then or did you never learn it? go ahead. >> again if i could have the general counsel follow up on the specifics, but as i recall at my own memory was over the course of that summer, but they could follow up as to spfrk specifics there was a date the staff learned it. >> that goes to the heart of -- and i'd be interested in the answer of the s.e.c. and the cftc's coordination of the regulations. so if s.e.c. did something that they should have upheld the fnra determination and if cftc didn't know that, then there's a problem. but if you did know it and didn't do anything about it, that's a problem. >> my memory is that there was coordination, but as to the specific dates and times, that i don't recall. >> thank you, mr. chairman. >> senator warner? >> thank you mr. chairman. i apologize for being out for

please join me in giving an especially warm welcome to chairman mary schapiro.plause] ♪ [applause] ♪ >> mary, i have to say we have had a fantastic conference. we have had great people but you are one of the most anticipated conversations in this three days, and the people found out that this was a q&a, questions came flying so i hope we have a really great discussion. i am very excited about this. i'm going to start off talking a little bit about your career and setting the stage for the kant -- conversation. you have had a remarkable career as paul mentioned, clearly now chairman of the fcc but you were chairman of the commodities futures trading convention. you were also a commissioner in the '90s and the question that i have is, how have those prior rolls prepared you for the job you have right now? >> you know, i think everything you do prepares you for whatever comes next, if you are willing to take the lessons and learn them. for me, being in government is obviously helpful although it too is obviously different today than it was six years ago. the opport

gary counselor and mary schapiro testified last tuesday. they told the senate banking committee that they found out about the losses through radio reports. they're all conducting investigations into the trading losses. shapiro added that she was focused on the disclosure be more accurate. this is about two hours. >> i will call this hearing to order. today we will review the progress being made to reduce systemic risk and improve oversight in the derivatives market. before we get to the main subject, i want to make a few comments about the recent news made by jpmorgan chase. the massive trading losses is a reminder of the financial crisis of 2008. since the conference call, our staff and members have held briefings with the company itself. following this briefing, i announced that i intend to call jpmorgan's ceo to testify before the committee. all in for him to testify, i expect him to inform the committee of the details on what was purported to be a very complex trade. our june 6 supervision a hearing, said there on their way to having a

during her tenure mary schapiro carried out their investor protection mission on an amazing number ofnts. implementation of the dodd-frank act, the 2010 reforms of money funds, changing the role of credit agencies and many of her subjects. for her extraordinary dedication and her extraordinary accomplishments over a long year as a regulator, chairman schapiro deserves and has our deepest admiration and respect. there's plenty to discuss this morning so let's proceed please join me in giving an especially warm welcome to chairman mary schapiro. [applause] >> i have to say we've had a fantastic conference and great people but you are one of the most anticipated conversations in this previous and when people found out this was a q&a questions came flying so i hope we have a really great discussion. the injury excited. i want to start off talking a little bit about your career in setting the stage for the conversation. you have a remarkable career as mentioned, clearly obviously now chairman of the fcc would your chairman of the futures trading commission, the ceo fnra and the question th

how would you evaluate how well mary schapiro has done as chairman of s.e.c.? this is to chairman levitt, but i'm sure any of you can chime in. >> i think she's done a fine job under very, very difficult circumstances. she's not had the support of those parts of government that should support her. she's had constant harassment from appropriators, from congressional overseers. and i wish she had more outspoken support from the administration, as well. >> let's hear from the administration. >> she's done an outstanding job under what i think are by any account, very, very difficult circumstances. >> congressman garrett, you have oversight over the s.e.c.? >> and i think she's done an admirable job, as you said, in a difficult time that she came into the position. and i think she attempts to be responsive to the demands of congress. but -- and i think she also understands that that is the role of congress, is of the role of oversight and that it's appropriate that we have her before congress. i think we heard 42 or 43 times already. but that's the role of oversigh

i think chairman schapiro said it very well. one thing i would add is this concept of portfolio hedging can mean different things to different people. what congress said, it has to be tied to specific risk of positions. this experience reminds us we have to make sure it is tied to specific aggregate positions. it is not like we think revenues will go up, like the european debt market these days. from my experience, these things sometimes mutate into something else when they are set up as a separate business unit and have a separate profit and loss statement. hedges generally lose money as many days as they make money because they are hedging something, the position is going up, the position makes money, and a hedge goes down. when you set up as a separate unit in a different country, different leadership, you start -- it is prone to morph. >> an initial reaction is that when the entity designed to be the risk manager and chastise everybody in the institution for being too aggressive or not responsive to risk is a major profit ce

we need for them to hold mary schapiro's feet to the fire and find out when she knew and how they knew about what was going wrong with the nasdaq on that day and that should have been addressed already. there is behind the scenes talk and you and i invited bob greifeld to come on the show and speak directly. i suspect for legal issues he would not for some period of time. mary schapiro, the head of the s.e.c., not a senate hearing so they can run a three-ring circus. >> that's a debate for another show at another time. i am not going to get into a political debate on this show. take facebook, for example, is rebounding essentially today. at least a little bit. it is up a couple of percentage points. let's just go there here. a buyer of facebook yet? >> yeah. as i said, i nibbled it and bought it at 33.80. i said i thought it would bottom yesterday. so far, that has held. it did get down to the low levels yesterday, even in the pre-market today. here we are, 80 cents, 90 cents higher. is it the bottom? i don't know. there has been so much stuff. even though we are on cable, he don't wan

securities and exchange commission chairman mary schapiro said that many trades in question were mostly handled by jpmorgan's british subsidiary in london. she said the commission is investigating whether the bank's earnings report for the first quarter this year had false statements or mistakes. >> our focus right now is on whether the company's public disclosure and financial reporting is accurate. >> commodity futures trading commission chairman gary gensler also testified and stressed the need to strengthen rulss to prevent risky trading. the senate banking committee called for the bank's cop executive jamie dimon to attend a hearing. >>> and now we bring you the weekly report from south korea. our reporter in seoul, sue choi, filed the following stories. >> reporter: business people are spending their lunch hours differently these days. they are not only enjoying time away from work but are pursuing hobbies or learning something useful for themselves. behind the change are some unique corporate strategies. this language school is located in seoul's main business district. during lu

today subpoenaed morgan stanley over the analysts face book reports in washington sec chairman mary schapiro said there are issues that we need to look at specifically with respect to face a vote banks underwriting the stock offering generally are barred from issuing recommendations until 40 days after it starts trading and any information given now must be given to all investors. >>> this was supposed to be the chance to restore the public's faith in the public markets and wall street and instead has been a reminder of everything people suspected about public markets and wall street. >>> morgan stanley stevens night said it acted in compliance with all applicable regulations but one veteran of the ipo market called this a travesty of this book he said has become a laughingstock. it was with coke cbs five. breaking news now coming out of the tahoe area and wild fire burns near salt lake tahoe and has destroyed several homes neda iranpour for a is in douglas county nv announced with the latest. >>> we're live in the town of wellington you can still see this fire burning very strongly adhere t

chairman, schapiro, you mentioned twice the list of factors that were essentially the ways to define risk mitigation that were in the vocal rule statute, and related issues in there were that you're addressing a specific risk. it's correlated and doesn't give rise to significant exposure that you have to begin with. and if you think about, for example, a company that has funds in twhebetween making loan the liquidity rule and chooses to do corporate bonds, assuming those will be allowed, then the first, easiest thing if you get worried about the quality of the bonds, which have been described as high quality bonds. but you get worried is you can reduce your exposure by selling the bonds. so that's strategy one. strategy two is to take insurance directly against the bonds. that's insurance on a specific position you have. and then you start getting further afield. you can kind of imagine the spectrum of positions further afield, where then you choose to do an index rather than the specific bonds that you have. and then you decide you need to raise income to pay for your insurance. the

i think chairman schapiro said it very well. this concept of portfolio hedging can mean different things to different people. what congress says, it has to be tide to specific risks. this experience we minds us we have to make sure. it's really tied to specific positions. it's not like well, we think revenues will go up or we like the european debt markets these days. and one thing that from my experience is these things sometimes morph or mutate into something else. particularly when they're set up as a separate business unit and they have a separate profit loss statement, separate compensation. because hedges to really be hedges generally lose money just about a many days as they make money. because they're hedging something, the position is going up. the position makes money. the hedge loses money. and if the position goes down, vice versa. when you set it you were as a separate unit somewhere else, maybe as different country, different leadership, you start to -- it's prone to morph. >> yeah, i guess one of these

the senate banking committee holding a committee would top regulators including mary schapiro to discuss died frank rules -- dodd-frank rules. bank of america and goldman sachs have scored fat profits that could total up to a billion dollars on trait that sometimes pit themselves against j.p. morgan. some banks made money acting as brokers. markets finally breaking the losing streak yesterday. have you put in for any summer vacation? more u.s. workers are taking more vacations. americans feeling more secure taking a few days off. 2.7 million workers took off last month. that is nearly double from the previous year. at the new york stock exchange, i'm jane king, bloomberg news, for wbal-tv 11 news. back to you. >> it is all about facebook, but it may wreak havoc on marriages? >> the benefits of the drink pom wonderful men not be so wonderful -- may not be so wonderful. >> 5:22. construction is moving along on the j.f.x. >> don't forget to e-mail us your response to our water cooler question of the day. what do you think of the 30-day jail sentence for the rutgers student who secretly tape

. >>> securities and exchange commission chair mary schapiro told the senate banking committee today that they found out about jpmorgan chase's over $2 billion in losses through media reports. the firm reported it has on may 10th. ms. shapiro says the sec is focusing on whether the firm's financial disclosure and reporting were accurate. here's a portion of her comments today before the committee. >> chairman johnson, ranking member shelby and members of the committee, i appreciate the opportunity to testify regarding the securities and exchange commission's ongoing implementation of title vii of the dodd-frank act. as you know, title vii creates an entirely new regulatory regime and directs the commission and the cftc to write a number of rules necessary to implement it. of course, title vii is just one of the many areas ranging from credit rating agencies to private fund and municipal adviser registrations where the sec is charged with writing rules. the sec already has proposed or adopted rules for over three-fourths of the more than 90 provisions in the dodd-frank act that mandat

kids, beyonce and melissa mccarthy, ann curry, the security and exchange commission chairman mary schapiro i know her. "hunger games" author susan collins and the facebook c.o.o. sheryl sandberg. i'm not so sure about beyonce's inclusion and my exclusion on the list especially since beyonce has only been a mother for like four minutes. >> yeah, that's an interesting pick there. but she's beyonce so -- >> i am not hating on beyonce. i love me some beyonce but she's only been a mom for like three minutes. >> angelina jolie has all those kids. melissa mccarthy. interesting little list there. but i guess maybe it's not -- it's mother's day this weekend so it's in the spirit -- >> all moms are powerful. it's a tough job. especially those new moms that are watching this show that have -- that are sleep deprived. >> they are learning. who unlike women on that list don't have nannies and don't have cooks and fitness people and makeup artists. women that are doing it the real american way. >> i believe those are my most powerful moms of 2012. >>> howard stern is back in the news. he's going on his

mary schapiro appeared and chairman gary gensler. you saw him right there.ld the panel they're investigating the loss. >>> also on capitol hill, three senators announce their plan to introduce legislation that would remove bankers from fed boards. of course, that came up in this whole situation because jamie dimon is on the new york federal reserve board of directors. the senators say it poses a conflict of interests. sales of existing homes rose in april. 3% to 4% higher. the median home price, $177,400. that's up 10% from a year ago. so where are they going up the fastest? according to data compiled for cnn, here is where you should be looking. they're all in the western part of the country. madera, california, number one. oregon has three cities in the top five. it has been 292 days since we lost our credit rating. we ask every night what are we doing to get it back? i'll tell you this, if housing gets better, that will do it. it's the single biggest reason this country fell into what could have been a great depression. if housing prices go up, it will me

. >> reporter: clearly here we're seeing that mary schapiro doesn't want to talk about what they're finding in the facebook question and answer period they're engaged in. she wouldn't even give us a sense of exactly when they will have answers but she says the sec is looking into it, sue. >> we look forward to getting some of those answers. eamon, thank you very much. >>> breaking news right now from the bond pits in chicago where $35 billion in 2-year notes was just up for auction. rick santelli is tracking the action at the cme. i got a peek at the bid to cover. it looks pretty strong on the surface. but, you know, you look in between those numbers. what do you see, ricky. >> your first sense is an accurate one. the bid to cover was 3.95 that sue alluded to. the 10 auction average is 3.62. you have to go back to november to find a higher bid to cover. and then after you find that one, you have to go all the way back to '07 before you find another one. so that was solid. indirects were about average at 33.5 over the last ten auctions. directs were a little light at 9%. here's the big deal.

i participated on that sunday on a group called with chairman schapiro. presentations were coming over a conference call, which i believe once or twice jon corzine spoke up and gave information. to answer your question, i think about what was my role that weekend? would that be helpful? >> you are chairman -- you still are, of the cftc. your role is chairman. >> as that week developed and the firm looked to develop and be in a frail shape, to ensure customer movement of money, and we were informed in that we can, by other regulators, and i compliment them for that, there were the big she's gone on to move the positions, so we wanted to be sure those customer moneys, positions were removed. week or a short from the company and from the first line regulators that all the moneys were there. it was only 2:30 in the morning that i was awakened on monday the 31st of october it that we learned of the shortfall at 2:30 in the morning. the sunday it was about moving the customers and key focus -- we did not care beans about jon corzine. we cared about the thousand

gary gensler along with the security exchange commission chair mary schapiro will testify today about financial regulations and derivative train. that is live from the senate banking committee at 10 a.m. eastern on c-span. on c-span3, hearing on the role of government and energy innovation. the senate energy and natural resources committee will hear from a number of the white house council of advisors on science and technology. live coverage also at 10 a.m. eastern. >> it's been a little over a year since japan expects an earthquake and tsunami. debris from the sonoma has begun to surface along the u.s. coastlines. now to a hearing about how the national oceanic and atmospheric administration has been responding. this is about an hour. >> we will call the meeting to order. today's hearing is on stemming the tide of u.s. response. the tsunami generated marine debris. we thank the witnesses for being here. welcome. we think an important hearing on the marine debris headed to the west coast from japanese tragedy and its long-term implications but we welcome david kennedy, assistant admin

mary schapiro was before the committee as a democratic senator from new jersey, bob menendez, asking her who was to blame for the $2 billion loss. >> with reference to what happens at j.p. morgan where the huge losses there took place, have you determined to is responsible for that? >> no. because we did not regulate the london branch of j.p. morgan .ank, tha our focus is on the quality of their risk disclosure and specific disclosures as a public company. when they talked about all the risks they faced as a business, and they talk about potential losses under their model, we are focused on the accuracy and timeliness of that disclosure. host: maria bartiromo let me ask you not so much to respond to that but to talk about the securities and exchange commission after dodd-frank. how have they changed their focus? what are american citizens getting from that oversight agency in the wake of a financial meltdown? guest: we are still watching the changes and anticipating changes. the issue with the securities and exchange commission is it does not appear that the sec has the firepower --

gary gensler, the chairman of the commodities futures trading commission and mary schapiro, chairmanrities & exchange commission. both agencies opened preliminary investigations into the bank's losses. >> circumstance of this nature where the activity does not appear to have occurred in one of our regulated entities the sec would be primarily interested in and focused on the appropriateness and completeness of the entity's financial reporting and other public disclosures. >> reporter: now the senators and regulators are getting into the weeds on some of this, these financial reform rules but the jpmorgan loss has triggered a partisan election-year debate over whether or not these rules should be tougher. democrats say this proves they should be and want to proceed with tough financial rerecall follow rules but republicans are saying, well, wait a minute if these rules are so terrific how many you too did not learn about these losses until you read about them in the newspaper? jenna. jenna: interesting, peter. just to take a big step back. jpmorgan chase says this was a mistake. it do

a few hours ago fox business caught up with one of the bank's top regulators, sec chairman mary schapiro>> i think it's safe to say that all the regulators are very focus bed on this, but i really can't comment on it. >> reporter: let's not forget congress. as a result, lawmakers are calling for stronger regulations of firms like jpmorgan. senator carl left vin writes: rs are also writing the details of a long list of federal regulations passed as part of the dodd-frank act. jenna? jenna: interesting. i believe the ceo, jamie dimon, said something to the effect this trade didn't violate the volcker rule, but violated his own principles as ceo. rich, thank you very much. >> reporter: thanks. jon: the frantic search for two young girls comes to a dramatic end. we'll tell you how these two sisters are doing right now. >>> plus, the president's push for clean energy may be about to cost you. a live report on what's happening now in the coal industry. also, rick folbaum live at the web wall for us. >> reporter: jon, ann romney could be the nation's next first lady. would you like to learn mor

also tonight, remarks from fcc chairman mary schapiro on her agency's implementation of the dodd-frank law, and had to tighten regulations on money market funds and financial literacy. she spoke earlier today at the annual meeting of the investment company institute, and you can see her comments at 8 p.m. eastern here on c-span2. >> these men go through things, and have scars that no one can understand except each other. spent the first thing that startled us was the relationship between harry truman and herbert hoover, who are two such personally and politically different men, and who ended up forming this alliance that neither of them would have anticipated. ended up being enormously productive. and form the foundation of what became a very deep french. the letters between them later in their lives about how important they had come to one another are really extraordinary. .. good morning and welcome to the center for strategic international studies. i'm in the external relations department here. we will be live tweeting from this event. our twitter handle is @csis. i have the privile

also on c-span, the head of the securities and exchange commission, mary schapiro, and the head of the commodities futures commission. they testified before the senate banking committee about senate regulations, derivatives, and jpmorgan. dnr wrote to the white house coverage of the presidential campaign continues, with a new hampshire speech on the economy. this is at 1:45 p.m. eastern. >> congressman, there are people looking at what happened for jpmorgan. they made a stupid decision, did something done -- dom. this is how this is supposed to happen. >> to some extent, this is true, and i take some credit for it. i think you would have seen much more panic in the economy, much more concerned. the financial institutions to be much better capitalized. this is different than what it would have had otherwise. >> this past weekend, congressman barney frank spoke about the over $2 billion loss, as well as the state of the u.s. world economy. the dodd-frank lot and gay marriage. watch the comments on line at the c-span video library. >> president obama delivered a high school commencement a

mary schapiro who is head of the securities and exchange committee went before the committee and democraticsenator from new jersey bob menendez asking her about who is to blame for the 2 billion-dollar loss. >> with reference to what happened at jpmorgan, where huge losses they are take place, have you determined who is responsible at this point for that? >> no. as i said our focus is very much, because we did not regulate the london branch of jpmorgan bank. that is an otc regulated entity. also this is on the quality of their risk disclosure and their specific disclosures as a public company. they talked about their potential, the risks they face as a businessman i talk about potential losses under their model. we are very focused on the accuracy and timeliness of that disclosure. >> host: maria bartiromo let me ask you not to much to respond to that but to talk about the securities and exchange commission posts dodd-frank. how have they changed their focus? how are they stacked up and what are americans citizens getting from that oversight agency, the regulatory body in the wake of the fi