Don't you also have a duty to disclose an adverse interest to your client? Do you have that duty?

Did Mr. Paulson or Paulson & Company come in wanting to go short?

Thank you, Mr. Chairman, and, again, I congratulate you for this in-depth investigation.

You are trying to shift the risk of that junk to somebody else.

Didn't you make a decision in December 2006 to basically head in a different direction? You were much too long and you wanted to go short. Is that not true?

It must be free of deception. It has got to be free of conflicts of interest. It needs a cop on the beat and it has got to get back on Wall Street.

Boy that Timberwolf was one shi**y deal.

That is being in a conflict of interest situation.

You think, hey, give the less flexible folks to our customers. We will save the more flexible for ourselves.

Did you not have a responsibility to answer a direct question, how can you get comfortable with these products from that source by saying we are going short, half the short is what we are buying?

Well, we will let the record speak to that.

You also took out a short position. Do you know how much you made?

I am not asking you now about the net. I am asking you about your short positions. You had a significant short position, significant and consistently in 2007, is that true?

So they thought you are on the long side, but not told you are on the short side of the same deal...

Clearly, this system must be reformed so that Wall Street banks are not seen and do not act as unscrupulous operators who seek to profit from the public's misfortune.

I would have hoped you would have said you were appalled as your first reaction.

It is gambling--pure and simple raw gambling.

You reduced [your] loan purchases.

An amazing performance with a market that went under in mortgages.

You shut down all residential mortgage warehouses.

You shorted synthetics.

You don't think there is any moral obligation here? Put aside the legal obligation.

Is that accurate? Did that reflect the facts at the time?

The only reason you lost money on the ACA deal was because you ended up with a piece of the long on that----

But you were paid a whole bunch of money by the Federal Government.