Carl Levin

Were you aware that the FBI in 2006 reported that the number of suspicious activity reports surrounding mortgage fraud rose by 700 percent?

I am just asking a simple, straightforward question.

Short-term thinking.

And if they were being used to short the market, would that be saying something about the quality of the reference to the assets?

There are some things, it seems to me, that are clearly wrong that happened and should not happen.

This is the fundamental conflict of interest that we need to do something about in the legislation.

That is pretty devastating, I tell you.

I was pretty amazed.

When you were there, that is the way it was handled?

It should have been.

So, in this case, these ratings were downgraded within a year and are now below investment grade. These are junk.

It should affect the analysis, as you indicate, but it did not affect the analysis here.

Today's hearing is the third in a series of Subcommittee hearings focusing on some of the causes and consequences of the 2008 financial crisis.

Shouldn't their collateral be treated differently if it is not performing?

Do you folks care whether the collateral makes a difference?

It was part of the daily workload.

It seems to me it is obvious that you ought to distinguish between lenders.

Part of that culture.

Your involvement, all of you, is a major contribution to our security.

This is not effective regulation. It is feeble regulation, year after year after year.

Why should it take the FDIC 4 months to get a desk or access to the examiner's library with WaMu documents?

It is obvious that we had a situation where a bank was riddled with unsafe and unsound lending practices.

I think your folks did have knowledge of it long before today.

I cannot believe the continuing audacity of this woman.

Well, that is exactly the kind of testimony which I think is going to be very helpful to us as we proceed with the legislative response.