Now, in your statement, Mr. Killinger, you described how the Office of Thrift Supervision was on site at WaMu and approved of WaMu's actions.
I think you would agree, contributed to the reduction in the criteria--the loosening of the criteria for these products.
He is laying out the risks as he sees them in the pool.
Excuse me for interrupting because we do not have that much time, but I just wanted to go into the numbers.
These are very serious allegations. These are high fraud rates.
You don't get involved in $3 billion authorizations?
The reason that Option ARM loans were selected is because they were most likely to go delinquent.
Did they know, were they informed that loans with those or some of those characteristics had a greater propensity toward...
You say you adopted this shift to high-risk strategy in 2004 and 2005. Is that correct?
Did that surprise you? Did that trouble you, that suddenly delinquencies hit very hard?
You have an obligation to tell your purchasers as an underwriter complete and truthful information.