Now, specialty lending is what Washington Mutual called its subprime operations after it abolished Long Beach as a separate entity and took over the subprime lending function itself, right?

Do you remember a discussion about delinquencies and that being a reason why you had better get rid of Option ARMs quickly?

Until then, there was a huge appetite, is that fair to say, for residential mortgages on Wall Street?

I think, Mr. Killinger, in your opening statement, you made reference to Wall Street's growing appetite for these products.

Wasn't there a recommendation in 2005 to take action against those officers?

Now, the fraud problem is not limited to Montebello and Downey.

Why weren't securitizations halted in 2005, 2006, and 2007 when similar underwriting problems were uncovered?

I am sure it is, but were you aware of it? That is my question.

How does that happen? You have loan officers under investigation year after year after year.

Would you have made that inquiry or thought it ought to be made?

We went and purchased these loans back.

Would selling those mortgages for that reason trouble you without disclosing that to investors?

Based on the consistent and pervasive pattern of activity among these employees, we are recommending firm action be taken.

Those are higher-risk products. That is November 2007.

Home Loans Risk Mitigation generated alerts that identified patterns of fraudulent loan practices and provided remediation recommendations that were not acted upon by [Home Loans] Senior Management.

And it was not your job, it was their job, the previous panel's job?

He is laying out the risks as he sees them in the pool.

And did it find that Long Beach had weak controls over the loan approval process?

But yet you hired Goldman Sachs in the end to help you out, is that correct?

What you heard today was these loans are delinquent.

How does a bank that turns out loans of which 58 or 62 or 83 percent contain misrepresentations or fraudulent borrower information, how does a bank operate that way and expect that there is going to be any confidence in the loans that it…

Should not happen. These are securities that happened on your watch.

And the push to increase loan volume made things worse?

the full range of life extension options should be studied, but that in deciding which life extension option should move to the engineering phase, the Nuclear Weapons Council (NWC) should give strong preference for refurbishment or reuse.

Robert C. Byrd was a member of this committee for nearly 3 decades.