Securities and Exchange Commission (SEC) Chairman Mary Schapiro and Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler testify on the implementation of the derivatives regulation before the Senate Banking Committee.
The panel looked at "reducing systemic risk and improving market oversight." The Committee also questioned both witnesses about the oversight of J.P. Morgan Chase and the intricate trades that combined in a $2 billion loss.
The reform stems from the 2010 Dodd-Frank financial oversight law, which orders an overhaul of the unregulated $600 trillion derivatives markets, a leading cause of the 2008 financial crisis.
Treasury Secretary Timothy Geithner stated during an event covered by C-SPAN that the mandate required by the Dodd-Frank Act, including new capital requirements, would "strengthen the ability of banks to absorb losses" like those at J.P. Morgan.
GOP presidential candidate Mitt Romney's campaign said last week that J.P. Morgan's trading losses were an "unfortunate risk of a free market economy."