up next, securities and exchange commission chair mary schapiro on her agency's proposed budget. and then, u.n. ambassador susan rice on the foreign operations budget request. that will be followed by the environmental protection agency administrator, lisa jackson, discussing the epa's budget. >>> the securities and exchange commission is tasked with implementing much of the dodd/frank financial reform law, and the agency's 2013 budget request is $1.5 billion. that's an increase of $250 million. s.e.c. chair mary schapiro recently testified before a house appropriations subcommittee about the budget request. >> hearing's going to come to order. thank you all for being here, and i'd like to welcome our witness, s.e.c. chairman schapiro. thanks so much for being here today. thanks to my colleagues for being here as well. joe and i decided not to talk baseball today, since both of our teams lost yesterday, so we're sad, but it is only the beginning, so, hopefully, it will all turn out well at the end. we'll be playing each other in the world series, right? anyway, again, welcome, cha

commission. mr. robert cooke is director of the division of trading and markets for the u.s. securities and exchange commission. mr. richard ketchum is chairman he is chairman and ceo of the financial industry regulatory authority. he is an executive chairman of the chicago mercantile exchange. i would like to ask witnesses to keep remarks to five minutes. your full written statements will be included in the areaing record. you may begin your testimony. chairman johnson, ranking member shelby and members of the committee. i take seriously a trustee of mf global links. i would like to provide a copy and of course input from regulators a lack of supervision and inattention to maintaining segregation of customer accounts caused the shortfall of customer funds. this is imposing personal liability on senior officers and directors when there is a regulatory shortfall. consideration should also be given to requiring not only financial operating principles, but senior officers, including the ceo and cfo to certify compliance with commodity segregation requirements on a much more frequent basis. secondly i s

commission. mr. robert cook speche is direc trading and markets for u.s. securities and exchange commission. mr. richard ketchum is chairman and ceo of the financial industry regulatory authority. mr. charles a. duffy is executive chairman of the chicago mercantile exchange. i thank all of you, again, for being here today. i would look to ask the witnesses to please keep your remarks to five minutes. your full written statements will be included in the hearing record. mr. gins, you may begin your testimony. >> chairman johnson, ranking member shelby and members of xhet. thank y -- committee. thank you for inviting me to testify. i take seriously my duty as trustee of mf global inc., to treat themic w equitably. i would look to present studies. a lack of supervision and inattention to maintaining segregation of customer accounts caused short fall of customer funds. the possible remedy is imposing personal liability on senior officers and directors where there is a regulatory short fall. consideration should also be given to requiring not only financial operating principles, but senior officers inc

claims," valukus means there is sufficient evidence for the justice department or the securities and exchange commissionbring charges against top lehman executives, including c.e.o. richard fuld, for overseeing and certifying misleading financial statements, and against lehman's accountant, ernst and young, for failing to challenge lehman's numbers. >> valukas: they'd fudged the numbers. they would move what turned out to be approximately $50 billion of assets from the united states to the united kingdom just before they printed their financial statements. and a week or so after the financial statements had been distributed to the public, the $50 billion would reappear here in the united states, back on the books in the united states. >> kroft: and then, the next financial statement, they would move it overseas again and file the report, and then move it back? >> alukas: right. >> kroft: it sounds like a shell game. >> valukas: it was a shell game. it was a gimmick. >> kroft: lehman misused an accounting trick called "repo 105" to temporarily remove the $50 billion from its ledgers to make it look as th

so we thought it may be an emerging market but now i don't know not if the security and exchange commission can't keep their identities as secret there's a new report out that federal securities regulators revealed the identity of one of their whistleblowers during an investigation into the company's pipeline trading systems and an f.c.c. lawyer showed a pipeline executive a notebook from the whistleblower and ok the guy i know recognized the whistleblower handwriting totally selling this guy out you know these guys are they're incredibly incompetent or incredibly corrupt or both but it's to me it's very suspect why does the government promote the federal reserve bubbles way pass or do they don't pop them when it when it benefits the financial sector book immediately when it's against the financial sector the f.c.c. does everything they can to destroy this emerging market which actually hurt the thought of competence yeah i mean rounding it we need we need markets a clear and they're doing everything their power who destroying these emerging markets that could help clear these clogged too b

this morning's "wall street journal" reports that the securities and exchange commission is looking into accounting practices at groupon. >>> global payments says it won't know for weeks how much the cybertheft of 1.5 million credit card holders will damage its bottom line. the world bank of canada has been charged by u.s. regulators for hundreds of millions of dollars in allegedly illegals futures trades. >>> ground beef processor afa foods filed for bankruptcy, citing a nationwide uproar over an ammonia treated meat filler dubbed pink slime by critics. >>> warren buffett, former paper boy and current owner of "the world herald" said i'm only a paper boy to the tune of "it's only a paper moon." jack of all trades there. >>> can you hear the guy bragging about winning the office pool? more on the kentucky wildcats victory. your early morning sports headlines are straight ahead. >> like lynn won herself. uh-huh. >>> the forecast all about severe weather, your forecast is coming up, you're watching "early today." save them. presenting woolite complete. it cleans your jeans, and won't tortu

securities and exchange commission will be charging egan jones and its owner and president, shawn egana face known to cnbc, for material misrepresentations and omissions of the company's 2008 application to register as a ratings organization. so, again, there was a press release out a few days ago. the possibility this might happen. shawn egan spoke to us. you know, denying it. the securities and exchange commission coming out and saying we will be charging shawn egan and egan-jones for what they call material misrepresentations and omissions in the company's application to register as a ratings agency. that news coming out right now. obviously, just breaking. we're going to give you more as it comes on. that news coming from the sec in washington, d.c., as we speak. >>> all right. moving on, is college worth it? do high-priced degrees really pay off in the long run? kelly evans breaks it down for us right now. >> that's right, brian. i'll do my best. let's check out the state today of student loans. as you can see from the large ticking clock behind me, student loan debt has reached o

usually, the filings with the securities and exchange commission in connection with mortgage-backed securities. we also consulted a database for the mortgage electronic registration system, known in the industry by an acronym. and other databases providing mortgage-backed dated information. we used tools to try to create as much as possible an accurate chain of title and to identify all relevant parties and foreclosure sales. the villone reviews were performed by qualified mortgage and legal professionals utilizing the proprietary auditing software developed by attorneys who are expert in mortgage origination, securitization, in foreclosure sales. this chart summarizes our findings. we found that 75% of the subject properties had exceptions relating to assignments. assignments refers to the transfer of the deeds of trust from one beneficiary to another, usually in connection with the sale. the irregularities included recordation of conflicting assignments, conflicting beneficiaries or different beneficiaries, potential issues related to the timing of the recordation of those and potentially re

the securities and exchange commission charged the firm and its president, sean egan, with making false statements on a regulatory filing four years ago. just last week, when we spoke with sean egan, he denied the claims and said he made all statements to the best of his ability. egan also asked why the firm is being singled out now and wondered whether it had anything to do with his downgrade of u.s. debt. tonight, egan says both he and the firm will fight the charges. >> susie: july 1 is an important day if you have a student loan. that's the day that interest rates on some federal student loans will double. politicians are latching onto the issue in the fight to win over young voters. but as sylvia hall reports, it could have a very real impact on students and their families. >> reporter: flanked by a crowd of north carolina college students, president obama today asked congress to keep student loan rates low for one more year. >> we can't price the middle class out of a college education, not at a time when most new jobs in america will require more than a high school diploma. wheth

former fidelity investor who was under investigation by the securities and exchange commission. and was actually fined for $250,000. and was tossed out of his job at fidelity. so with these big donors, sometimes comes risk. gwen: ok. let's talk about risk. because i've come up with a whole new theory about washington which is that there are four stages of a washington scandal. there's outrage. heads that roll. investigations are held. and lawsuits are filed. they are usually about sex and money or both. and that's what engulfs both the u.s. secret service and the general services administration this week. where workers on the taxpayer dime allegedly went way, way outside the lines. first, michael, a brief recap. >> i don't know if it's stage three or four. gwen: i don't know. >> if you've been frustrated with government this is a fun time. officials of the general service administration, that's an agency that takes care of office space and other functions, managed to throw $1 million conference for themselves outside of las vegas. including spending $7,000 on sushi and $3,200 on

the police plan to coordinate with the securities and exchange commission which is also investigating aij. >>> engineers in finland are engaged in a groundbreaking project. they're building the world's first permanent site for disposing of nuclear fuel. the facility will need to contain the hazardous waste for up to 100,000 years. that's how long it takes for radiation to decrease to a level at which it's safe. the accident at fukushima forced government officials around the world to rethink their approach to nuclear power. france is a global leader in nuclear energy. authorities there have selected a potential disposal site. they say that the facility will be operational by 2025. german officials have decided on a location, but they put those plans on hold after fukushima. officials in the united states were considering a facility in nevada. but those plans are also on hold, having been blocked by the obama administration. authorities in japan intend to build a disposal facility, but have yet to decide on a location. the counterparts in finland are well on their way. engineers have a

it relaxes securities and exchange commission regulations put into place a decade ago after hundredsfamilies lost their life savings in the enron scandal. critics worry provisions could open the door to investor fraud. groups like the aarp oppose the bail because it lists an advertising -- the bill because it lists an advertising ban. >> to make sure americans don't get taken advantage of, the websites where folks will go to fund these start-ups and small businesses will be subject to rigorous oversight. >>> dick chaney 's daughter says the former vice president is doing well after his heart transplant. liz chaney was asked about her father's health in washington. and she had good words about it. >> he is doing wonderfully. he's at home. he was out of hospital after ten days which is tremendous. and when i talked to him yesterday, he walked outside to the end of the driveway to pick up the newspapers and walked back. so he's doing very well. thank you. >> her 71 year-old father released from a virginia hospital on tuesday, he has had a history of heart troubling, suffering five heart

it's the security and exchange commission. i believe we can be much more efficient with our funds as opposed to having bodies be placed in other places with some exception. so i do appreciate -- i do appreciate that. both of your comments, very, very much. i am curious, though, particularly with you, mr. rosch. do you think, knowing that you aren't crazy about the notion of the cfpb, but do you believe that your jurisdiction should have been transferred over to the cfpb? >> good lord no. >> i absolutely agree with commissioner rosch. we can come back to this in the next round. if we're not transferring jurisdiction, we ought to stay active in the field until they have proven they can do the job. i think it can over time. >> lupty kags of efforts a waste of taxpayer dollars. let me passing on my questioning. >> thank you, madame chair. first of all, i would like to congratulations you and your staff on putting forth a bujd request $12 million less than for 2012. and that's probably the last time anyone will hear me congratulate

securities and exchange commission procedures, requires those corporations to maintain transparent accounting records so that bribes can be identified. >> woodruff: and based on the reporting by the "new york times," a story that came out a couple days ago, what parts of the law is it that wal-mart is allegedly supposed to have violated. >> well, of course, we won't know for sure until the justice department completes its investigation and actually decides whether to go forward with an enforcement action, but the "new york times" allegations conceivably could go to both parts of the f.c.p.a. in other words, what the "new york times" reports are that wal-mart de mexico was paying bribes to obtain permits and other approvals from mexican government officials and in addition that the accounting used by wal-mart's mexican subsidiary was specifically designed to hide these payments, just the opposite of the kind of transparency that would be required by the f.c.p.a. accounting rules. >> woodruff: now, explain the difference between a payment in order to get business or in order to get a permit or

securities and exchange commission.ompany spokesperson said they would go public but many investors have wondered whether they would list on nasdaq or on the new york stock exchange. nasdaq is a technology focused exchange that hosts i.t. giants including apple and google. facebook's spokespersons have not announced the date of their ipo but sources say it will be the end of may. the firm's total market value is expected to be more than $100 billion. facebook now has more than 900 million users. >>> the executives are shoring up the business before they go public. they'll spend $550 million to buy aol patents from microsoft. microsoft is acquiring more than 900 patents from aol. microsoft executives have agreed to sell the bulk of them to facebook. lawyers at facebook are apparently hoping to head off potential lawsuits over intellectual property. yahoo! is suing the firm for alleged patent infringement. facebook spokespersons say the deal is a significant step in protecting their interests over the long term. >>> and h

as part of the bill rolling back securities and exchange commission rules. we have more live events coming up on the c-span networks, 12:35 eastern on our c-span 2, an aviation summit. presenttives of the aviationtry. live at 2:30 on c-span, afghanistan's defense and interior ministers will speak at the center for strategic and international studies about partnership with the u.s. starting at 2:30 eastern. later tonight here on c-span3, american history tv looks back at the battle of hampton roads, that conflict known as the battle was the first between ironclad ships. again, waiting for former president bill clinton, he will be delivering the keynote address at the ex-im bank conference. foreign ministers from the g-8 countries are meeting this week. secretary of state hillary clinton opened the meeting yesterday at blair house across from the white house. top items include iran, syria and north korea. >> once again welcome to the historic blair house here in washington. i greatly appreciate this opportunity to discuss in person the many global issues that

i am the director of the division of trading and markets of the securities and exchange commission. thank you for the opportunity to testify on behalf of the commission, concerning the lessons learned and policy implications of the collapse of mf global. the bankruptcy of mf global has resulted in serious hardship for many of its customers who have experienced significant delays and uncertainty with respect to ability to access their own assets. more broadly, the failure of mf global and the shortfall in customer assets. highlight the need for financial firms and for regulators to remain vigilant in ensuring customer assets are appropriately protected. sec rules are designed to protect customer property by prohibiting broker dealers from using customer funds and securities to support proprietary positions and expenses. broker dealers that hold securities or cash for customers must maintain physical possession or control over securities that customers have paid for in full and cannot use the securities to support the firm's business activities. further, when broker dealers extend cred

. >> tom: jacob frenkel is a former enforcement attorney with the securities and exchange commission. he now pratices with the law firm shulman rogers. >> tom: how serious should shareholders take the bribery accusations? >> if shareholders are worry body whether or not it's fundamentally going to affect wal-mart business. really not at all. i really don't believe it's going to impact individual decisions whether to shop at a wal-mart on the other hand, in terms of reputational effect and corporate governance, it's significant. it happened a number of years ago, and there's in no way an explanation, but i think the government has come down hard on wal-mart, and right now it's doing exactly what it needs to do, and it does not happen again. >> let me ask you here. several big multinational companies have been accused of violating this law in the past, semens, for instance, paid a billion and a half dollar fine. you c halliburton, and lucent fined under this act. how serious are these allegations? >> i would expect the stul consequences, the numbers to rank among the top five. >> i woul

i am the director of the trading markets of the securities and exchange commission. thank you for the opportunity to testify concerning the lessons learned from and policy implications of the collapse of mf global. the bankruptcy of mf global has caused serious hardship for its customers with respect to their ability to access their own assets. more broadly, for the failure of mf global and a shortfall of customer assets highlight the need for financial firms and regulators to remain vigilant in ensuring that customer assets are appropriately protected. fcc rules are designed to protect customer property by prohibiting broker-dealers from using brokered funds and securities to support proprietary positions and expenses. broker-dealers that hold securities are cash for customers must maintain control over securities that customers have paid for in full and cannot use the security staff to support the firm's own business activities. further, when broker-dealers to extend credit to allow customers to buy securities on margin, there will strictly limit how much of the sec

according to the firm, the securities and exchange commission voted today to take action against it, accusing egan-jones of making misstatements in its application four years ago to be one of the few approved credit rating agencies. founding principal of the firm sean egan joins us from philadelphia. sean, its sec accuses your firm of overstating how many securities you raids, how long you have been raising those securities, howe dow respond? >> our response is that this is not about the quality or integrity of our rating. that we are not paid by the issuers. we don't have the typical conflict of interest. we are paid by institutional investors to get it right and we have done just that. the sec is accusing us of filing an application back in 2008 which they approved. and two years after that approval, they are questioning its information we provided on the form. our view is that we would have been happy to give them more information as of 2008 but now five years later, it's very difficult to support from that information. and further, the agency-- . >> tom: the agency isn't call foo