It is so clear, it is so obvious, there is such a fundamental conflict here to me.

I think we got the answer that it ought to be a factor.

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

I objected to it being the driver. I went ahead and tried to prevent us from what I believed was committing securities fraud.

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

You didn't retest the old deals, did you?

That is pretty devastating, I tell you.

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?

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.

In July 2007, did you know who David Goldstein was?

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

It was also a resource issue, is that correct?

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

It was common knowledge that ratings shopping occurred in structured finance.

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

Market share should not be driving ratings.

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

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?

I would like more candor from senior management about our errors and how we will address them in the future.

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.

There was at Moody's, I believe--a man named Andy Kimball, is that correct?

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

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

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