the broker dealer directly supervised by the sec. although the commission does not discussion investigations publicly, i can say that in circumstances of this nature, where the activity does not appear to have occurred in one of our reglated 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. in conclusion, as we continue to implement title 7, we look forward to continuing to work closely with congress, our fellow regulators, both at home and abroad and members of the public. thank you for the opportunity to share our progress on the implementation of title 7, and i will, of course, be happy to answer any questions. >> thank you. chairman gensler, please begin your testimony. >> good morning, chairman johnson, ranking member shelby, and members of this committee. i'm pleased to testify along with sec chairman shapiro. today i'm going to speak to the three topics of your invitation letter. first, where's cftc on market

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

them at the sec on financial matters. how does the bond market work. how does the equity market work. and all the basic concepts of investing as well. it's been a hugely successful program. they go back home. they go back into their high schools and they teach -- they teach the children either through existing math courses or through specialized financial literatesy courses. we focus a lot of our resources on alerting investors to problems as much as we do on educating them about the basics of investing. so warning them about the implications of buying foreign stocks or structured products or the fee structure for mutual funds or other investments and try to keep people alerted to ongoing scams and issues that they need to know about. >> last two questions before we end. you mentioned social media. and clearly in some ways a lot of your rule making or your guidance that you're giving our industry is working hard to keep up with all of the technology. how do you sq

the fbi, sec are all conducting investigations on what happened. this next hearing focuses on the dlif tifz market and the regulatory law. senator tim johnson of south dakota chairs the hearing. it 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 of the derivatives market, but before we get to the main subject of this hearing, i want to make a few comments about the recent news made by j.p. morgan chase. the company's massive trading loss is a stark reminder of the financial crisis of 2008 from that the necessity of wall street reform since the firm's may 10 conference call and members staff have jointly held briefings with regulators and briefing with the company itself. following this i announced last week i intend to call j.p. morgan's ceo jamie dimon to testify before the committee. in calling for mr. dimon to testify, i expect him to inform the committee of the details surrounding what has been reported to be a very complex trade. with today's h

some how the sec didn't know about this, which was incredible. >> eliot: and the sec did not bother goingthe due dill diligence that you're doing on these loans. we saw this, and we went to these agencies. the agencies didn't want to investigate it. >> yes, right, it was very strange. the related problem of all the securitization issues that went along with that, the mass fraud and securitization. pitching loans to pension commerce and misleading what was in those packages, and nothing. >> eliot: despite all this, when the sec finally gets a case, they neither admit nor deny any wrongdoinger. a little slap on the wrist. >> more importantly, the evidence in the case is never made public. there is an additional thing that doesn't happen, is that the public isn't warned about the full extent of the problem because the evidence is buried. >> eliot: right, and you came upon, and i think that's one of the many things that i love about your articles, i love all of your articles, as you know, in the end of talk about the speech given by the commissioner. tell us what he said that boggles the mind

are the sec. -- of the sec. >> that raises another question. if i were running j.p. morgan, could i set this up in a way to avoid you? >> that is an important issue in the cross border release and how we will apply our roles and -- our rules and activities that may not take place or may take place overseas at an affiliate's or are in a branch overseas? those of the issues that we will lay out in our cross border police. -- release. the fourth filly of the u.s. entity -- foreign entity and the farm customer will likely be -- that is registered with us, doing business with a foreign customer, would likely be subject to our rules, branch operating in a different country. those that have the title seven rules applying. we want to leave this out in detail for commenters. >> in this area of dodd-frank, as you know, it has been one of my concerns that the more that you crank it down, the more regulations become more and more onerous, the greater the temptation is for smart people to hire smart lawyers and accountants. at the end of the day, avoid you. >> that is right. that

she was named acting sec chairman by president bill clinton in 1993. president clinton later appointed chairman shapiro chairman of the commodity futures trading commission where she served until 1996. from there chairman shapiro entered the leadership ranks of the financial industry's self regulatory organizations. in 2006 she was named chairman and ceo of the nasd. in that role she over saw nasd's merger with a member regulation operations of the new york stock exchange. she became ceo of the resulting organization, the financial industry regulatory authority. in january 2009 president obama appointed chairman shapiro chairman of the sec and she was unanimously confirmed by the united states senate. during her tenure mary schapiro and the sec carried out their investor protection mission on an amazing number of fronts, implementation of the dodd-frank act, the 2010 reforms of money funds, changing the role of credit agencies and many, many other subjects. for her extraordinary dedication and her extraordinary accomplishments over long year as a regul

. >> the sec. >> the sec, you know, there have been some of the chamber of commerce attacks have been some of those have been great, gibson's work, scalia's work on that and it has been good and beneficial to the sec because i am a believer that that sort of aggressive challenge and robust judicial review that makes the agency better ultimately, i think the sec keeps trying and they keep losing some of these and i think little by little they're getting better on these and you look at the fcc and i think their rule makings are at some level getting better and i think that sort of judicial review is very important and particularly on this, it is important that there be an atmosphere of non-retaliation to a company or to an entity that challenges the -- you can understand why no one wants to challenge the sec, will they fear what the next step is going to be and the next chapter and the next investigation and ftc, there is a similar scarcity of challenges to ftc rule making. i think it is effective judicial review is an important piece of this regulatory stage when we think about technol

the sec upheld to determination. and the mf global publicly recorded a 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? >> again, if i could have the general council follow up in the specifics. but as i recall it, my own memory was over the course of that summer. but it could follow specifics if there was a date that the staff learned it. >> well, it goes to thehe

>> the sec's authority is simply civil. not criminal. >> are you working with entities that are conducting criminal investigations? >> i believe the fbi has announced publicly that they have open the a criminal investigation, and we will all work closely together, even though we have different -- >> into which of the two that i'm referring to? >> i'm sorry? >> mf global? >> i think actually with respect to both. >> with respect to both. okay. so in essence, it's the agencies that are conducting civil reviews, i assume, and to the extent that there are criminal reviews being conducted, they are being conducted by law enforcement entities. correct? >> that's correct. >> not the senate banking committee conducting those? >> i would not -- tell the banking committee what to do or not to do. >> at this point, as far as i know, we're not. let me ask you this. do you interpret -- do you hope to interpret the volcker rule until way that what took place at jp morgue won not have been possible to have taken place or would not have ta

mike green in the first period and with that 88 secs into the game.career post season goal. it was 1-0, caps and that second period, 1-0 and that is through the legs of the defender. the caps suripper a goal in the final minute and hold on to edge the rangers, 2-1 and force a game 7 in saturday night's new york. >> and we have to keep the same level of desperation. one team is gone and another pushed back. the efforts are in response to the previous game and we're facing the same situation as last night. >> and both teams are going to be pumped to play a game seven, you know, winner takes all. what comes down to one game, you know. >>> d.c. native peterson will not replay a fight. he tested positive in march for testosterone. although he passed other tests, he appeared this morning on our show with his trainer and reiterated he's not a cheat. >> i'm cheating. >> right. >> at the end of the day, allow me time to prove my innocence and i know at the end of the day, a lot of the people who are dragging my name through the mud will see that. >> and i didn

are the sec. >> that raises another question. if i were running j.p. morgan, could i set this up in a way to avoid you? >> that is an important issue that we are all wrestling with in the cross border release and how we will apply our roles and activities that may not take place or may take place overseas are in a branch overseas? those of the issues that we will lay out in our cross border police. the fourth filly of the u.s. entity -- foreign entity and the farm customer will likely be subject to our role, including a branch operating in a different country. we want to leave this out in detail for comment years. -- commenters. >> in this area of dodd-frank, it has been one of my concerns that the more that you crank it down, the more regulations become more and more onerous, the greater the temptation is for smart people to hire smart lawyers and accountants. at the end of the day, avoid you. >> that is right. that is why international efforts are engaged. they are painstakingly time consuming. we have done this on a bilateral basis with the regulato

the sec upheld the determination and mf global reported deep deficits in august, 2011. when it did the cftc learn that mf global had a capital deficiency? >> if i could have the general counsel follow up on the specifics, but as i recall, my own memory was over the course of that summer. they can follow up on the specifics, the date the staff learned it. >> that goes to the heart -- and i will be interested in the answer of the sec and the cftc's coordination of the regulation. if the sec did something they should not have, and if cftc did not know that, there is a problem, but if you did know it and did not do anything about it, that is a problem. >> my memory is there was coordination, but as to the specific dates and times, i do not recall. >> thank you. >> senator warner? >> thank you. i apologize for being out for so long. i do not have a specific question on mf global, but there are questions i would like ask. one of the items that senator shelby mentioned is this issue of coordination between your two agencies on approach to rule implementation. one of the things

the sec promising senators it is going to investigate. >>> and machines versus man. standing up for the little guy. today we have major support from jim cramer. coming up, what needs to be done to level the playing field so the machines, the high frequency traders, don't end up screwing you. >>> sue herera starts our coverage at the new york stock exchange. sue? >> good to see you, ty. issue number one, you said it. facebook and the big mess at the nasdaq. shares down almost 15% from friday's ipo price of 38 bucks a share. nasdaq is in the center of the storm on this one. and since friday shares are now down about 2%. kayla tausche is at the nasdaq after the company held a key shareholder meeting earlier this morning. kayla? >> sue, that shareholder meeting was for the fiscal year of 2011. they're voting on a few things that election of the 11 board members, bob grifeld compensation as ceo which they easily waved in. there was one mention of facebook when grifeld acknowledged what happened on friday and says the value proposition for listing on the nasdaq is stronger

let's go to sec again.ony romm, from politico, thank you for sharing your information with us. >> thanks for having me. >> cenk: you hear that the center right are the center right. i'll show you how progressive americans are, including legalizing marijuana. >>scores of the most talented filmmakers in the world gather in new york city every year for the tribeca film festival. the eclectic slate of films draws an estimated 3 million people a year. cat coira's film, "while we were here," is about how travel can change the way we look at our lives and loves. >>you never know someone until you travel with them, because it takes people out of their element. >>(narrator) director morgan spurlock's films have taken him all around the world. his latest, "mansome," is about grooming in the modern man. the project brought him to germany to a professional beard building championship. >>just as there are beauty pageants for women, there are, you know, now these beard growing competitions and mustache competitions for m

the entire cable industry is working on this collectively with the sec, enterprise. hopefully we will bring together three critical pieces. low-cost computers with drizzle literacy, training command a low-cost broadband network. and bring those things together will help overcome the adoption and get the country better positioned. >> how would you determine who is low income, who qualifies? >> we are using the program as the metric in these communities. so, you know, these are data sets that we can assess and evaluate. we use as a criteria for eligibility. so you're in a family and is eligible for free lunch, you will be available for this program. now, and the startup phase your technique and the viet -- and even easier test. if you were at a school, your child went to school, 75% eligible for school lunch as a benchmark. we're going to serve anyone at the school. you may not be. we are not going to make that distinction, at least in the startup base. >> if we could return to policy. the verizon spectrum company deal is being looked at by the sec. was there talk here

i don't know of any sec investigation in this regard, but i may not know. we have and it forced the bureau who can investigate things on their own. and so, we will follow the facts and the law as established president and procedure. in this case should it become the case, and any of the case that comes along as we'll. >> host: and back to your testimony from the oversight hearing. in today's robust and dynamic online and mobile marketplace, government should not limit the option to broadcasters and newspaper community to attract investment efficiencies and share the costs of news production. media ownership, is that going to be an issue in, within the fcc in the next year or so? and showed online companies, like facebook, like yahoo!, have the same regulatory framework that a "washington post" or and abc would have? >> guest: so, ask a question. speaking in that testimony to the newspaper broadcast ownership ban, which came but in 1975, in the wake of watergate, some say, maybe it's to punish the "washington post" for watergate, breaking the watergate story

we spoke with david druker of roll call. >> david, refresh our memory, what happened with the sec in 2010? >> so there were a number of workers at the sec, people in executive positions, using their workplace computers to watch pornography. >> how many people? two, people, 10, 15? >> it seemed that it was about 2 and-a-half dozen. somewhere in the neighborhood of 30. some of the people made upwards of more than $100,000 a year. a number of people did this. it was found out. there were investigations in congress, some workers resigned. some were censured. it's possible some were fired. we know that government contractors that were doing this lost their contracts. and then the whole thing just sort of went away because there is only so much the government can do whether it found it it's acting in ways unbecoming. >> reporter: the head of the sec didn't lose his job -- >> the chairman of the sec wouldn't lose their job, that's presidential appointment. the president -- i think wisely chose not to yank that appointment. but there were employees who were suspended without pay, docked, if

the sec upheld the determination and mf global reported deep deficits in august, 2011. when it did the cftc learned themf global had a capital deficiency? >> if i could have the general counsel follow up on the specifics, but as i recall, my own memory was over the course of that summer. they can follow up on the specifics, if the date the staff learned it. >> that goes to the heart -- and i will be interested in the answer of the sec and the cftc's coordination of the regulation. if the sec did something they should not have, and if cftc did not know that, there is a problem, but if you did know it and did not that anything about it, that is a problem. >> my memory is there was coordination, but as to the civic dates and times, i do not recall. >> thank you. >> senator warner? >> thank you. i apologize for being out for so long. i do not have a specific question on mf or, but there are questions i would like ast. some of the items that senator shelby magic is this issue of coordination between your two agencies on approach to rule that implementation. one of the things

well -- when will the sec start collecting the data, and where does the implementation stand? >> the security-based swot reporting data collection will begin when the rules are finalized, which they are not yet for regulation. it is hard for me to protect -- predict when we what final adopting rules. hopefully sometime later this year. we have one set of rules that to propose, and that we have done one final and will do another final in another month or so, and then a steady stream after that. i am a big believer in transparency in the marketplace. we have seen it work extremely well in other markets. we think it is critical for the public to have access to this information. it is a discipline that ultimately translates to management as well to note regulators and the public can see the information. when we do have them in place, we will have a great -- quite critical information right down to the trader in trading desk from which a particular tree section emanated. >> i think transparency is so critical, so i am hoping i can convince you that in addition transparency, they wi

>> they're defining what they're doing by the sec rules.ve these hair-splitting rules about what's a political ad and what isn't. by the sec rules, you absolutely have to use one of the magic words, electricity, vote or don't vote. >> you mean jumping all over a candidate isn't opposing them? >> if you call them and say, tell them to stop eating live puppies, or tell them to stop t supporting obamacare, the sec rules are not considered an ad. the sec looks at things like facts and circumstances, and their rules seem pretty clear. the question is if they'll do anything about that. >> joe, share your opinion because you think about this as much as i do, about our democracy and keeping it somewhat democratic, where people actually count more than the big money people. >> one would hope. look, anybody who looks at this understands that the sec has failed to enforce any reasonable standard for these rules for many, many years. it's a political operation. it's staffed and the commissioners are democrats and republicans and the republicans protect

we will get a reaction from the sec and the oversight of more regulation. and of much better guard rails in place. we will see how this plays out. that was the aimed initially of glass-steagall. we're talking about a long time and things change. consolidation happens. new products came out. a new investor class. globalization. summing things change in this industry to ultimately treat this idea that maybe we should be doing financial supermarkets, until of course the next crisis occurs. the sec is looking at all of this including changes in market structure like the uptick rule and like things to avoid the flash crash, to ensure that investors feel like there are guardrails in place to ensure that investors and depositors are not impacted. we don't have resolution on this yet. government is trying to make the case that more regulation -- i do not think more regulation is as effective as better regulation. i was astounded during the 2008 crisis to learn that a.i.g. had 400 regulators. are you telling me that 400 regulators missed the fact that this firm had

brad richards scores with 6.6 secs to go and into that overtime.with the faceoff and to mark stall. the slapper, through traffic and beats him for the game winner and some rangers on the power play and trail the series 3 games to two. >> and we keep moving forward. i thought we played a good game and we were six secs away from winning and we did video and we're going refound. >> we know that in the last seer, we didn't -- we missed an tune in game 6. we missed an opportunity to go in that seer. all we're worried about is tomorrow. >> and tomorrow, do or die, verizon center. >>> and to football now, there is one constant since the redskins won super bowl 36, mike shanahan guaranteed no such drama in 2012 when he named his starting quarterback on sunday. had the head coach named richard griffin 3 the starting quarterback. they paid a hefty price to get up in the draft and get a franchise quarterback. and two teams not surprised that shanahan named him the starter so early. >> and i think you were more surprised to hear it. he likes to keep things sec

with 21 points, 3 secs to g.with a powerplay and a goalie polled would skate 6-on-4 against dale hunters' caps. the final seconds, the rangers ryan callaghan on the doorsteps and disabled the score with 6.6 seconds left to tie the game 2- 2. defenseman john carlson backed him up and met. the puck went under the arm n. overtime, the rangers on a powerplay and john mitchell with the faceoff to mark stall. and beats him for the game winner. 1:45 into overtime. the caps had this won and fall to the rangers 3-2 and trail the series three games to two. >> this, obviously, not how we wanted them in the game yesterday, but it is what it is and that is play-off hockey. that is hockey period. this kind of stuff happens and the agency is still the same, the mentality and focus is the same. we will play hard tomorrow. >> we keep moving forward. we would have loved to have the game, sure, but i thought we played a good game, and we're six seconds away from winning. so, we did some videos today and we'll rebound and play a goo

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the crisis and goldman was reaching some precrisis levels in the stock in april of 2010 and then the sec makes these charges about this and all of a sudden the stock got slammed. there is the chart. the thing that's interesting to me t 4 less to do with the fundaments of goldman sacks and more into a pr war against the company and a sediment trade stuck in there and since then, it never recovered. it had a lot of issues on that front on a pr front. >> before we get to david gregory who just spoke this afternoon, take a listen to what he had to say. >> there were structural risks -- >> apparently we don't have that. the regulators are looking into this. this gets to the point that goldman went through how it stuck there in the range. there were shoes that dropped and dropped and dropped. >> the thing about the regulatory look, they are trying to see whether or not they disclosed this at the appropriate time and whether this was something that should have come up sooner or later. that is undetermined. what's interesting to me is what's going on now with jpmorgan can have big implications f

the crisis and goldman was reaching some precrisis levels in the stock in april of 2010 and then the sec makes these charges about this and all of a sudden the stock got slammed. there is the chart. the thing that's interesting to me, it had less to do with the fundaments of goldman sacks and more into a pr war against the company and a sediment trade stuck in there and since then, it never recovered. it had a lot of issues on that front on a pr front. >> before we get to that, david gregory who just spoke this afternoon, take a listen to what he had to say. >> they're trying to see whether it should come up sooner or hater. what's going on could have big implications for goldman sachs. if you have to think about what their forecast is, you have to say this can't be good from a regulatory perspective. if anybody will get impacted in addition to jpmorgan, it has to be goldman. >> goldman sachs was seen as taking advantage. and jpmorgan simply shot themselves in the foot. they're the ones that lost the money. so i think there's a huge difference also as far as pr, i think jamie dimon is ab

the dodd-frank act that mandate sec rulemaking. additionally, the sec has finalized 14 of the more than 20 studies and reports that the dodd-frank act directs us to complete. and the commission has proposed almost all of the rules required by title vii. we're continuing to work diligently to implement all provisions of title vii as well as the many other rules we are charged with drafting and to coordinate implementation with the cftc and other domestic and foreign regulators. under the dodd-frank act regulatory authority over swaths is divided between the cftc and the commission. the law assigns the sec the authority to regulate security-based swaps while the cftc has primary regulatory authority over the bulk of the title vii over the the counter derivatives markets. our rule makings are designed to reduce asymmetries and facilitate the centralized clearing of security-based swaps to reduce counterparty risks. they are also designed to enhance investor protection by increasing disclosure regarding transactions and mitigating conf

they call themselves open the sec.lysts who know the system inside out. they don't take it as a criticism if you call them political geeks. to of them join me now. alexis goldstein and akshat tewary. alexis, let me start with you first. >> sure. >> how were you inside the belly of the beast, as it were, end up on occupy. >> no one goes to wall street to do anything other than to make money. i felt like i could do more with my life than to make wealthy people more wealthy. i first looked at occupy wall street with skepticism, but then i had to go down and show my support. >> and then akshat, being in high finance you sympathyed withsympathizedwith them? >> my understanding of the law movemented me to get involved with the occupy sec. as an administrative lawyer i understand that the average person can get involved if they want to. unfortunately the average person does not know that. i want to combine the two and utilize the energy of occupy wall street and get something good done through the process. >> explain to me ho

we've not gone ignored at the sec. we walked through the subway station if we don't think theories active. we prefer the 50 page comment letter than a little sign over the card machine in the metro. islamic to you go back to the office and talk about that? >> i thought we had the best of all time which is we look forward to trying to fit the metro station into the, and file. [laughter] it was all actually lost on me. so we understand the passion and around this issue but that doesn't mean we can't confront this on behalf. islamic outside of the money market funds, let's put that aside for a moment, what keeps you open at night? >> i will say i can't quite put money market funds aside to read this is true through the summer so let me quickly say i think the reforms the we did in 2010 were very good and three positive. speed is a constructive force with the report but i receive shortly after that helped him form much of our thinking about the 2010 reform and they worked well for what they were designed to do but we still

and as far as i know, the sec is on board with that. >> i want to raise it, anyone can comment on it. we spoke about this briefly when we first met. the 2010 706 section report found that 4 million puerto ricans had no broadband access, which is one sixth of all americans identified. 70% of puerto rico was still unserved. my understanding is the national broadband plan does not factor in puerto rico as if it's not part of the united states. and it explicitly excludes puerto rico. where do we stand on this issue? i think it's of critical importance. you may be able to update us son that? >> it is an important issue much puerto rico is very much a part of our plans, and we have our goal of reaching unserved americans with broadband, puerto rico is very much a part of that. the funds have to come from somewhere, which is why the more support we can get from the committee on a bipartisan basis to bring savings out of the program, the stronger and faster -- the stronger we'll be, and the faster we'll be able to move. there's good news in puerto rico. mobile connectivity has increased rapid

high school teachers wear for a significant amount of time in the summer, and we train them at the sec on financial matters how does the bond market work and the basic concepts of investing as well so it's been a hugely successful program. they go back home, they go back into their high schools and they teach the children either through existing math courses or to specialist financial courses. we focus a lot of our resources on alerting investors to problems as much as we do on educating them about the basis of investing, so warning them about the implications of volume foreign stocks and structure products or the fees' structure for mutual funds or other investments and try to keep people alert to ongoing scams and issues that the need to know about. >> last two questions. you mentioned the social media. and clearly in some ways a lot of your rulemakings for guidance that you are giving the industry is working hard to keep up with all of the technology. how do you square that circle? >> it's such a good question and it relates to the question of the high-frequency trading and algorith

later, sec chairman merry shapiro on the implication of dodd-frank.possible regulation to prevent a financial crisis. republican presidential candidate mitt romney will be in lynchburg, virginia to address liberty university graduates at their commencement semi. this is the former governor's first visit to the christian university. we will have live coverage at 10:20 a.m. eastern. this weekend on newsmakers, senator john hogan on house and senate negotiations over the transportation bill, dealing with highway and transit programs. the house version would require approval of the keystone pipeline through south dakota. newsmakers is sunday at 10:00 a.m. and 6:00 p.m. eastern here on c-span. >> consequently, if you cut us from doing that at a point in time where much of the crime is globalized, it is a double hit in some sense. >> on wednesday from the fbi director testified on capitol hill about the negative impact of budget cuts. political correctness, and renewing the foreign intelligence surveillance act. watch it online at the c-span video library.

the sec has never considered broadband access service to be telecommunication services. that doesn't mean i'm happy to provide them with the information. >> let me ask a little bit about the incentive options. i apologize if i missed the answer to this question earlier. do you have a date by which you do expect to finish the design process? >> we don't. we have a goal for starting the process, which is by the fall, launching the rule makings. we intend to move as expeditiously as possible. we want to get the timing right to maximize participation by broadcasters and have a successful auction. >> okay. and do you have -- can you share with us any guiding principles on the conditions you may consider attaching to the auction process? i can't. i expect a ro bust process, hearing from a lot of stake holders, consulting with the committee. the goal is maximizing the opportunity to all americans. learning from experience, and maintaining the u.s. leadership. >> commissioner, do you have any to add? >> i think buildout provisions rr important. they should be using that spectrum

in 1988 president ronald reagan appointed her the commissioner of the fcc -- sec. was named acting chairman by president bill clinton in 1993. president clinton later appointed chairman schapiro the chairman of the commodities futures trading commission where she served until 1996. from there, chairman schapiro entered the leadership ranks of the financial industry's self-regulatory organizations. in 2006 she was named chairman and ceo. in that role, she oversaw the merger with a member regulation operations of the new york stock exchange. she became ceo of the resulting organization the financial industry regulatory authority. in january, 2009, president obama appointed chairman schapiro the chairman of the sec and she was unanimously confirmed by the united states senate. during her tenure mary schapiro carried out their investor protection mission on an amazing number of fronts. 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 extraordina

the sec is not recommending enforcement action against. the against lawmakers and investors have been pressing the agency more than three years to determine whether or not lehman brothers misrepresented its financial health before filing its biggest bankruptcy in u.s. history. automobile dealers using consumers bad credit histories to charge them higher interest rates on car loans if must now tell buyers they have-and duration of their credit report. that came out of a federal ruling. it's planning to appeal the decision. consumer reports says there's no need to shell out big bucks on expensive sunscreen. on that and what morgan stanley is doing for facebook investors all coming up in the next hour. linda bell reporting for abc 7 news. back to you. >> thank you. outside, 69 degrees. , >> a case of irony for d.c. council and marion barry. he held a press conference to apologize for comments that he made about asian business owners only to offend another group. what is prompting some to demand an apology. >> if you are thinking of taking met

take sot :13 secs "esta clínica ha estado abandonada por muchos años.plicamos por este apoyo financiero para poder reconstruirla desde noviembre, y apenas ayer recibimos la noticia de que fue aprobada" vo continues con el dinero tambin agregarn servicios de rayos equis, atencin dental y de visin.. la clnica de la raza en oakland recibi 400 mil. otras clnicas en east palo alto, berkeley y oakland tambin recibieron fondos. cu - anchor una excursin a sacramento esta maÑana tuvo como propsito cabildear por fondos para la educacin. take vo ms de 100 personas abordaron autobuses esta maÑana en san jos para ir al capitolio. estudiantes, educadores y miembros de la comunidad se reunieron con legisladores para expresar sus preocupaciones por los recortes estatales a la educacin. esta fue la dcima ocasin en que se realiza la excursin. el evento es organizado por el supervisor de santa clara dave cortese. take vo --los maestros de las universidades estatales de california aprobaron irse a huelga en caso de no conseguir mejores y nuevos contratos. ---la huelga de d

>> the culpability for losses to investors but also potential penalties if the sec investigation goes forward and they are held accountable for failing to disclose the kind of information that should be available, more broadly to the public, misleading and deceptive practicesn under the sec laws. that kind of penalty, if it ever occurs, is way down the road. what we need to examine right now is does the ipo process work for everyone fairly? is the facebook poster child, so to speak, an illustration of why the laws need to be made fairer, more exact? >> the secretary of the commonwealth of massachusetts, william galvin had to say this. >> if we're going to attract investors back into the marketplace, there has to be a sense of fairness, that everyone is even, that my money is just as good as yours. investors will not feel that way if they think certain people are getting insider information and others are not. >> so, is he both talking about fairness, which you mentioned. he also mentioning inside information. fairness is not necessarily something that you can sue somebody over. but in

it is my understanding the sec is looking into the new scorer deliberately miss led the sec regarding its application to renew the license of wwor new jersey. mr. make doll -- mr. mcdowell do you have a review? >> the chairman has stated it quite eloquently. >> i heard it. >> very good. i agree with what the chairman said. >> senator, we do have a process in place of a potential petitioner that has a right to file before us and when and if they do, we take all of this matter seriously and will review in a timely manner. >> mrs. rosenworcel. >> the technical qualifications for licensees of the commission should monitor the situation. >> senator come with the risk of going last day of nothing official to say but it will associate themselves with college on the question can commit in the concept of renewal presenile state the record carefully and support appropriate action. >> i think that some action here is absolutely required and we have to get going on this. new jersey, where one of the stations exist would be the fourth-largest media market in the country and hear these people have

the sec is beginning to be reactive in that space.here are a lot of assumptions in your scenario that need to be proven. what did the co know? is it so clear these transactions as structured are bad exactly? that takes a lot of knowledge and expertise to know that. and a lot of chutzpa to create that. the deferred prosecution agreement, essentially, that firm had to go out of the tax shelter. there are available remedies. we have to be very careful about thinking we know enough as prosecutors to decree them. >> i want to be clear, i do not want to suggest for a moment that we will not -- and we will aggressively pursue cases criminally, but as a white- collar defense lawyer for 10 years and now as an assistant attorney general, i do not think we should discounts the investigation of cases, even if we do not bring them, if the ceo of an institution feels that he or she is subject to criminal liability when we interviewed them or we put them in the grand jury, or will they have lawyers and this is hanging over their heads for years and

you had a sit-down interview with the sec chairman. chairman jankowski talk about shared services agreements that need a closer attention. >> it is a subject that has come up someone significantly -- consistently. i think it was meant to signal that is one area that they may have some concerns when people are bundling power and leverage the right combination of these agreements. there may be something in there that concerns them. i assume that is what he was focused on. to be candid i have not heard much more about this beyond that. it is interesting they are focused on that. we will see what comes of that. >> any concerns for the cable industry? >> for some of my members it is. this has been a touchy issue. there are operators that are strenuously continue to be concerned about rising programming costs, particularly in the broadcast for is -- phase. there are a whole lot of pieces to that, part of which are part of the government policy and regulation. and right or wrong the commission should solve elements of it. if it does not have

hang on a sec.what, i was going to go to commercial to see what's going on, but then we get the two-minute warning from the president saying he's coming in two minutes. i'm not going to go to commercial. >> jamie dimon on the fed board reminds us that the federal reserve is there to preserve the safety and soundness of banks, which is a good thing, except some people think when we have regulators, the regulators are there sort of protecting little guys instead of big guys. >> or everybody? >> and as we said about the sec, what they're often looking for s again, confidence in the market, and these guys have the revolving door on the sec and the fed board. just in the last couple years we've had a couple of these guys switch over, and for me this should be a lesson for a lot of the people like sam who want to give regulators more power to sort of control the market, because -- >> what i take from this is we need a stronger statutory structure in which the regulators work, because you can nibble at the

former sec chairman william donaldson and former fed chief paul volcker.across the table are officials from the fdic's office of complex financial institutions. it is their job to plan for a big bank failure. >> ...mitigate systemic risk. >> so the scenario is sort of everything but title ii. >> narrator: there are many questions. >> non-bank operations... >> narrator: how to unwind derivative contracts? >> billions of dollars notional value of derivative trades... >> narrator: how to protect customers' money? >> the funding is provided by a line of credit provided... >> narrator: how to deal with foreign subsidiaries? >> the subsidiaries went into the solvency, value was eliminated... >> narrator: how to prevent catastrophe? >> this is a problem f the entire strategy. you continue to have mega-banks. because from a market point of view, surely what you're looking through to how disruptive would that be, what kind of systemic knock-on effects could it create? >> i don't know how this ends. we like to think that we live in unique times, but during the 1920s