SEC Chief: Need Effective Regulation

" Although many Wall Street's top players and Washington's top regulators are together in one little right now in New York. And arms to find -- she is there with 1 of them good morning -- Good morning Alexis yes we are very pleased to be joined at right now with SE TS EC chairwoman Mary Schapiro. She's racked up the heels of her opening breakfast commentary her speech that you gave this morning thank you for joining us -- Right at the top I was in your speech listening to all of your different priorities you're working on regulating financial markets that regulating new financial products. I'm not a handful of priorities you have 3700. Employees how to prioritize everything -- doing right now."

" We'll try to prioritize our best available -- contains a personal coming out of financial crisis quality issues that needed to be responded to very quickly. Money market reforms when it's on short selling was another of those countries. Then there's some issues have been on the on the burner for a long time that the agency hadn't completed work on. Such investment adviser pay to play practices for example in taking. Public on pension -- on advisory business and then there were some issues that came on out of the Madoff fraud made very clear in the agency. -- needed to -- some regulatory gaps with respect to how. On assets of customers are are capped by investment advisors to ensure their safety. So all of a couple of different sources of -- part of an initiative and then of course just coming into the agency needed to recruit senior. Not managers and talent on the try to change orientation. To the investor. In more focused and direct."

" But the -- of all of -- all of the changes that you -- on how do you measure your progress we're -- the markets up. We're seeing and perhaps some of these criminals getting hot and Galley and now the group and that in the news room where we're pushing through with Bernie Madoff. How what are your metrics for evaluating."

" I don't progress its hardiness -- we have great -- on -- and I went through some of those indices that -- out you know. -- fifty more investigations over the same period last year we've doubled the number of temporary restraining orders or emergency actions that would we've doubled the amount of penalties and just fortunately fuselage metrics are helpful. I think another metric for options have we feel the regulatory god. Then -- caused investors issues over the last several years and and will movie has to do those kinds of things. It's truly measure investor confidence I think we'll take a long time the fact that the markets up just terrific but I'm not sure it's really good measure -- pure investor confidence."

" One of the criticisms of financial regulation and perhaps that the timing of finance and financial regulation right now if that is taxing this systemic and -- at a time. For recovery is critical how do you respond back."

" I think we have to get the balance right but I think it's actually important that we fill the gaps in regulation. And that we have robust. An effective regulation because investor confidence is at least in part going to be based on the belief. Com or maybe holy ghost on the belief -- market there people have a right information to make reasonable decisions about how to Allison I think well. If they don't think the markets affair they don't have honest good information. They're not going to invest in them we won't be any regulations of articles showing people how that won't look."

" But regulation also complicate things and it do you worry -- Financial transactions and the anti -- perhaps the importance of America's financial assistance and and shifting the focus. Other international markets which are perhaps more loosely --"

" So we always think about that and regulation does not cost plus there's no question about it we try to be sensitive to costs and burdens. That we imposed against a balancing -- all the time. Was sensitive to the international competitiveness issues for the same time we're focused on investor protection -- integrity she's right here at home. Homes that people confidence about the integrity of the US."

" What do you think about some of the end of proposals coming down the pike from congress. --"

" Right here I think there's a lot of -- great work going on my comments were very supportive of the over the -- and it's easy to riveted steel. And bringing those products in the regulation of hedge fund registration was supported. Agree with you press conference regulator whether it's the Fed or counsel of regulators are combination of the two to three parts that I favor. Clearly we need to deal with resolution of non bank institutions congress that's really. And even the -- on the creation consumer enhanced products agency is geared towards focusing on a problem. Have consumers been treated. And credit markets for very long time so I think congress is actually doing a very good job on trying to move. -- his agenda forward against the bills on the president's desk to sign me by the end of the year."

" SEC chairwoman Mary Shapiro thank you for your time here very busy woman thank you -- I spent many minutes. With us this morning."