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FIRST ON CNBC: CNBC TRANSCRIPT: CNBC'S MARIA BARTIROMO SITS DOWN WITH MARY SCHAPIRO, CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION, TODAY ON "THE CALL"

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AP

WHEN: Today, Monday March 29th at 11AM ET

WHERE: CNBC's "The Call"

Following in an unofficial transcript of a FIRST ON CNBC interview with Mary Schapiro, Securities and Exchange Commission Chairman, today on CNBC's "The Call."

All references must be sourced to CNBC.

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BARTIROMO: I'M SITTING DOWN NOW WITH MARY SCHAPIRO, CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION. ONE OF HER FIRST INTERVIEWS SINCE TAKING THE JOB. YOU ARE IN THERE JUST OVER A YEAR.

SCHAPIRO: JUST OVER A YEAR.

BARTIROMO: THANK YOU SO MUCH FOR JOINING US. HOW'S IT GOING, CHAIRMAN? LET'S TALK ABOUT WHAT IS ON YOUR PLATE RIGHT HERE. YOU'RE LOOKING AT A NEW AGENDA AND A NEW FORCEFULNESS COMING OUT OF THE SEC. CAN YOU TELL US ABOUT IT?

SCHAPIRO: SURE. I'M HAPPY TO TELL YOU ABOUT IT. I LIKE TO THINK OF IT AS HAVING HAD THREE JOBS FOR THE FIRST YEAR OF MY TENURE AT THE SEC. THE FIRST IS LOTS OF NEW LEADERSHIP TO BE HIRED AND BROUGHT INTO THE AGENCY ACROSS ALL THE DIVISIONS. THEN LOTS OF HIRING BELOW THE DIVISION HEAD LEVEL IN ORDER TO BRING IN SOME NEW SKILL SETS, NEW TALENT. PEOPLE WITH BACKGROUNDS IN FINANCIAL ANALYSIS, HEDGE FUNDS, STRUCTURE PRODUCTS, TRADING STRATEGIES SO WE CAN BROADEN THE DEPTH AND KNOWLEDGE OF THE SEC. REALLY STRENGTHEN OUR INTELLECTUAL CAPITAL. THE SECOND PIECE WAS TO BE FULLY ENGAGED IN THE REGULATORY REFORM DEBATE WHICH HAS REALLY CONSUMED WASHINGTON THIS PAST YEAR AS YOU KNOW. THE THIRD WAS TO GET LAUNCHED ON OUR AGENDA OF INVESTOR FOCUSED INITIATIVES THAT WERE REALLY IMPORTANT TO HELP RESTORE CONFIDENCE IN THE CAPITAL MARKET SO THAT INVESTORS BELIEVE THERE'S SOMEBODY WATCHING OUT FOR THEIR INTERESTS AND ARE NOT AFRAID TO COME BACK INTO THE MARKETS.

BARTIROMO: IT'S INTERESTING YOU SAY YOU'RE LOOKING AT HEDGE FUNDS AND OTHER AREAS OF BUSINESS IN TERMS OF YOUR HIRING PROCESS. THAT'S OBVIOUSLY BEEN ONE OF THE CRITICISMS OF THE ECONOMIC TEAM IN WASHINGTON, THAT THE PRESIDENT DOESN'T HAVE ANYBODY WHO'S ACTUALLY RUN A BUSINESS WORKING WITH HIM.THAT'S WHAT ACTUALLY YOU'RE TRYING TO DO IS WHAT YOU'RE SAYING.

SCHAPIRO: EXACTLY RIGHT. WE CREATED A NEW DIVISION OF RISK STRATEGY AND FINANCIAL INNOVATION AND WE BROUGHT IN SOME PEOPLE THERE. THROUGHOUT THE ORGANIZATION, INCLUDING IN OUR EXAMINATIONS GROUP AND ENFORCEMENT WHO HAVE ON THE GROUND EXPERIENCE WITH THE NEW PRODUCTS AND NEW TRADING STRATEGIES AND WITH VEHICLES LIKE HEDGE FUNDS, PRIVATE EQUITY, VENTURE CAPITAL SO THAT WE CAN DO A LITTLE BIT BETTER JOB OF STAYING UP WITH WALL STREET.

BARTIROMO: LET ME GET TO SOME OF THE NEWS ITEMS OF THE DAY, CHAIRMAN SCHAPIRO.YOU RECENTLY ACKNOWLEDGED THE SEC'S OVERSIGHT OF LEHMAN BROTHERS MAY HAVE BEEN INADEQUATE LEADING UP TO THE FINANCIAL CRISIS WHEN THE BANK USED AN ACCOUNTING METHOD, REPO

105 TO MASK LOSSES. IS THE SEC INVESTIGATING LEHMAN BROTHERS AND ITS AUDITOR ERNST AND YOUNG

SCHAPIRO: I'VE ALREADY SAID IN TESTIMONY THAT WE ARE LOOKING ATTHE LEHMAN ACTIVITIES VERY, VERYCAREFULLY. AND ALL THE ISSUES SURROUNDING REPO 105. IN ADDITION, WE WILL BE ON PROBY -- REPO 105 TYPE ISSUES WITH EVERY MAJOR FINANCIAL INSTITUTION VERY THOROUGHLY OVER THE COMING WEEKS.

BARTIROMO: YOU'RE LOOKING AT OTHER INSTITUTIONS WITH REGARD TO THE USE OF REPO 105?

SCHAPIRO: SURE. WE WANT TO MAKE SURE THEIR ACCOUNTING AND DISCLOSING ARE ACCURATE WHEN IT COMES TO CHARACTERIZING REPURCHASES.

BARTIROMO: WE'RE LOOKING AT THIS FINANCIAL CRISIS. A LOT OF PEOPLE ARE SAYING I BOUGHT INTO BEAR STEARNS WHEN I THOUGHT THINGS WERE HEALTHY. I LOST A LOT OF MONEY. PEOPLE ARE SAYING HOW DID THIS HAPPEN. WE HAVEN'T SEEN CHARGES OF WRONG DOING. WHEN ARE WE ACTUALLY GOING TO FEEL LIKE THE SHARK IS DEAD SO WE CAN GO BACK IN THE WATER?

SCHAPRIO: WE HAVE BROUGHT CHARGES.

BARTIROMO: REALLY?

SCHAPIRO: YEAH. MORE THAN A DOZEN CASES I WOULD SAY COMING DIRECTLY OUT OF THE FINANCIAL CRISIS.IN THE PAST YEAR THAT I'VE BEEN ON BOARD. SO THE RESERVE FUND WHICH WAS THE MONEY MARKET FUND THAT BROKE THE BUCK, WE'VE BROUGHT A CASE. STATE STREET BANK. EVERGREEN. ANGELO MOZILLO AND A NUMBER OF OTHER COUNTRY WIDE EXECUTIVES.

BARTIROMO: CRIMINAL CHARGES?

SCHAPIRO: WE CAN'T BRING CRIMINAL CHARGES. ONLY THE JUSTICE DEPARTMENT OR THE STATE ATTORNEY'S GENERAL CAN DO THAT. WE CAN ONLY BRING CIVIL CHARGES. BUT WE HAVE BROUGHT, AS I SAID, QUITE A NUMBER OF CASES. THERE ARE MANY MORE IN THE PIPELINE.

BARTIROMO: DO YOU THINK REPO 105 HAS BEEN USED BY MORE FIRMS?

SCHAPIRO: THAT'S WHAT WE'RE IN THE PROCESS OF EXPLORING.WE'LL BE GETTING VERY DETAILED REPORTING AND INFORMATION FROM FINANCIAL INSTITUTIONS ABOUT HOW THEY'VE ACCOUNTED FOR AND DISCLOSED THEIR REFINANCING OR THEIR SALES UNDER REPOS.

BARTIROMO: WHAT'S THE BIGGEST THING YOU'VE LEARNED SINCE TAKING THE JOB? TELL ME ABOUT WHAT WAS GOING ON BEFORE YOU ENTERED THE BUILDING.

SCHAPIRO: I THINK THE BIGGEST THING I'VE LEARNED IS THAT OUR TRADITIONAL FOCUS ON INVESTOR PROTECTION, MARKET INTEGRITY, DISCLOSURE, TRANSPARENCY AND ENFORCEMENT WERE ALWAYS THE RIGHT PATH FOR THE SEC TO BE ON. TO THE EXTENT THE AGENCY GOT CAUGHT UP ABOUT WORRYING ABOUT THE COMPETITIVENESS OF U.S. MARKETS VIS-A-VIS LONDON, SOME THOSE ISSUES, IT GOT DERAILED FROM OUR CORE MISSION. WE SPENT A LOT OF TIME IN THE PAST YEAR BREAKING DOWN BARRIERS, BRINGING IN THE RIGHT PEOPLE AND REFOCUSING ON THOSE THINGS THAT WILL GIVE INVESTORS CONFIDENCE IN THE INTEGRITY OF THE MARKETPLACE.

BARTIROMO: GREAT POINT. EVERYONE IS SAYING LONDON IS THE NEW PLACE. AS A RESULT THEY'RE TRYING TO GET THE BUSINESS BACK.

CHAIRMAN SCHAPIRO, I WANT TO ASK YOU ABOUT SHORT SELLING. IF, IN FACT, WE DID SEE RUNS ON THE BANKS DURING THIS PERIOD WHEN THINGS WERE FALLING APART, AS A RESULT OF RUMOR, SPECULATION, BECAUSE OF THE SHORT-SELLERS WE'RE GOING TO TALK ABOUT THAT ON "THE CLOSING BELL." IN THE MEANTIME I'M GOING TO SEND IT BACK TO THE STUDIO.

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