So in this case, in the case of Madoff, my understanding was when he became an investment advisor, didn't he use the investment advisor reasoning as one way to preclude FINRA from looking----

Is performance of funds one of the criteria you look at?

My sense is it clearly didn't in this case.

I think you hear the Committee's enormous concern and frustration with how this enormous fraud went undetected for so long.

I hope we have lots of time for questions, because I have got lots of questions.

If we had perhaps had all four of those as criteria, might that have led to a more thorough analysis, not just in this firm but in other firms?

One of the questions, and I know that Senator Shelby and Senator Schumer have talked about additional resources.

And there was no--from your investigators, there was no skepticism about it? There was no red flag? They accepted that at face value?

I would think that actually the Enforcement Division's location in the greater Washington area is still a pretty good place for it to be located.

I think your sensible and informed views have really helped calm down a lot of the debate here in this country.

We need to see more discipline and more leadership and a clearer articulation of the priorities of where this money is going and why.

Isn't that in and of itself another red flag that should have said, hey, is this guy doing this all out of the his good heartedness?

So much of the spending that is in the bill, frankly, although may be laudable in and of itself, has no place in the stimulus bill.

So much of the spending that's in the bill frankly, although may be laudable in and of itself has no place in the stimulus bill.

Absolutely. We often, in our examinations, investigations of broker dealers, take our jurisdiction as far as it can go, and then once we hit that jurisdictional dead end, refer that conduct over to the SEC.

What about the question of the actual performance of the fund?

Five years, 10 years from now, we are not going to be right back where we are--the argument that when you made the loan, you knew who you were lending and what the rules where and, if we went down the road a little bit, we would be…

Well, I mean, what you have is the homeowner over a barrel, didn't want to have to leave the house and be homeless, and you are gouging them for more than you could get under the legal process because you have that leverage over them.