The merry-go-round deals required Metro to organize and pay for thousands of truck shipments between its own warehouses.

So you can be held liable if you negligently entrust someone.

I am wondering if that is a concern of yours, Governor Tarullo.

Most business people do not consider that a choice.

Finally, Goldman has not allocated any capital to cover potential losses from a catastrophic event.

The effect of this arrangement was that the queue was lengthened. Is that correct?

Did you agree to the deal?

If you can say there is no correlation between premium and the length of the queue, then you are in a very different mathematical world than most of the mathematicians that look at this.

I take it you are not going to answer the question as to whether or not it was important to you that they cancel the warrants.

Well, at least two of the three of these banks apparently are planning to exit the field, although somewhat gradually, that has caused so much concern, which has grown so vast, which has created such risk and which creates such potential…

But by exploiting certain loopholes and using aggressive interpretations, often without telling regulators beforehand, JPMorgan and its bank have been able to accumulate physical commodity holdings far in excess of the limits while…

You do not have to pursue the deal either, do you?

The average consumer, the average citizen, who has no knowledge... of the manipulations that have been carried out.

The result was the following: That the line, the queue, to remove metal from these warehouses went from 40 days to 665 days.

Goldman is arguing that when the premium goes up, the LME price goes down because the all-in price will always be about the same.

I am just asking you if it was important to you.

Again, this goes, I guess, to Professor Omarova.

And there is nothing in the Chinese Wall Policy, even if it is implemented properly, that stops Goldman from sending direction and information to you?

I happen to agree with what I believe Senator McCain was driving at before about the potential value of that information.

It was their choice to cancel or not cancel.

There is some evidence here that this warehouse company shared premium payments with a metal owner when the metal is delivered to the physical market.

One of the reasons that JPMorgan wanted to get into the power plant business was to increase its access to important market information.

I think we will hear tomorrow what we have heard already in our investigation; the Fed did not know that JPMorgan was excluding its bank's metals until December 2011.

And there are two things that I find incredible about this: The first is that anyone would advertise in a resume that they know about a flaw in the system, signaling that they are ready and willing to exploit that flaw; and, second, that…

We have a situation which is totally unacceptable to me, and that is that in the area of commodities, which do not have the same regulation as stock...