Carl Levin

There has got to be a way that the regulators are going to find to eliminate this conflict of interest.

Yes. I tell you, these emails are, I think, just devastating as to the kind of culture that was going on here.

Those are risks and they must be managed properly so that the rating system is not compromised in any way.

He says it is at risk due to pressure from bankers.

It wasn't here. That is all I can tell you.

So that you felt Standard and Poor's should downgrade subprime, significantly.

You are going to need to start downgrading. We need people. We need resources now.

We need to put a stop to this madness!!!

Whenever S&P made a criteria change to its RMBS model and that change was more conservative than the previous model, did S&P retest the old deals to see if their structure still passed for rating purposes?

You don't remember? So you are not denying that happened, is that correct?

But you never heard from a bank that they really would prefer you to remove somebody, it is just not working out well with that person?

Did that trouble you?

Take a look at Exhibit 1i.

I am glad to hear that.

I have a Goldman deal with subprime Fremont collateral. Fremont is not performing well.

Well, that may be what they believed, but I am asking you what should be the case.

From my personal perspective, it is something that I would have wanted to know, because it is more of a qualitative not a quantitative assessment if someone who intends the deal to blow up is picking the portfolio.

So the market share was a factor there as well as to whether or not you would use the new available information to re-rate the existing securities?

Would you all agree with that, it would be riskier if there was no verification of income?

Market share should not be driving ratings.

Our markets, if we lose our credibility, not only have the folks on Wall Street lost an incredible business, not only the rating agencies an incredible business, but the United States of America has lost one of the keys to its success.

Should a CDO which is expected not to perform be given a AAA rating?

The answer is here from a supervisor, it doesn't make any difference that their collateral is not performing well.

It was also a resource issue, is that correct?

He sure put his finger on WaMu.