Carl Levin

I think there is a clear conflict of interest when that happens.

So you guys made $3.7 billion that year.

But you ended up with $2.5 billion of taxpayers' funds.

You have the responsibility to tell that client of your adverse interests.

Is there not a conflict when you sell something to somebody and then are determined to bet against that same security and you don't disclose that to the person you're selling it? Do you see a problem?

How about the fact that you sold hundreds of millions of that deal after your people knew it was a (EXPLETIVE DELETED) deal. Does that bother you at all?

Wall Street is on the wrong side of this fight.

One of the responsibilities of an investment bank is to go out and sell deals.

The evidence shows that Goldman repeatedly put its own interests and profits ahead of the interests of its clients.

It hasn't been a pretty picture so far and I don't think it is going to improve, although, frankly, the beginning of the Senate debate on strong financial reform next week does give us some hope.

The real problem is not that the market does underweights rating quality but rather that, in some sectors it actually penalizes quality by awarding rating mandates based on the lowest credit enhancement needed for the highest rating.

So you didn't use the term that they said you used?

Was that one of the reasons that you didn't do that, Mr. McDaniel? When you didn't do that, was that shortage of resources?

There was a message from Ms. Warner in Exhibit 87 pleading for resources.

Were you aware in 2004 to 2006 of the growing use of no doc and low doc loans?

Our investigation has found that investment banks, such as Goldman Sachs, were not market makers helping clients.

And the great demand for mortgages for that purpose?

I think the market coverage issue is the more important issue.

I believe that attention to market share is one thing we must pay attention to in running the business.

And would you believe it should be considered differently?

The credit rating agencies continued to issue AAA ratings on new subprime RMBS and CDOs in 2007 despite warnings

And you continued to bring that up in 2007, is that correct?

In 2006, delinquency rates for loans supporting subprime securities were hitting record levels.

It was resolved. Were the resources adequate?

Following conversations with banks--where they asked for the removal of somebody from the relationship, did you ever accommodate that?