Richard Shelby actually said...

"Absolutely."

"Governor, over the past year, our largest bond insurers have teetered on the edge of collapse due to imprudent bets on the value of mortgage-backed securities."

"The circumstances that permitted AIG's securities lending operation to potentially threaten the solvency of several of its insurance companies and their counterparties suggests that our regulatory sys..."

"There is no system that is built to withstand an insolvency the size of the notional value of the credit default swaps AIG was invested in."