[Notes:WASHINGTON 5/22/12 SOURCE: POOL][SOT/:SEN. RICHARD SHELBY/R-ALABAMA]where was the sec here? Did they know what was going on and if not, why not?[SOT/:MARY SCHAPIRO/SEC CHAIRMAN]the sec became aware of the activity also through press reports back in april when the london whale trading was first reported on. To remind everyone this activity did not take place in a brokerage dealer and we do not have oversight responsibility over broad based cdes products that were the subject of much of the trading although I think there's still much to learn here. [SOT/:SEN. RICHARD SHELBY/R-ALABAMA]And what was your responsibility as you see it as chairman of the sec, looking at what happened or or trying to find out what happened at jp morgan chase?[SOT/:MARY SCHAPIRO/SEC CHAIRMAN]clearly our focus right now is on whether the company's public disclosure and financial reporting is accurate in light of what the press has teed up as what did they know and when did they know it? [SOT/:SEN. RICHARD SHELBY/R-ALABAMA]And if they knew something say a month earlier was going wrong should they have disclosed that to the sec, the cftc and is that what you're trying to find out now or do you already know?[SOT/:MARY SCHAPIRO/SEC CHAIRMAN]That's what we're investigating right now. What where their earnings release statements and their q1 financial reports accurate and truthful. (****END****) VIDEO PRODUCER: matt friedman---------------------------VIDEO SOURCE: pool-----------------------VIDEO APPROVAL: ----------------------------VIDEO RESTRICTIONS: ----------------------------------MARKET EMBARGO (S): --------------------------------SCRIPT/WIRE SOURCE: