Mr. Secretary, I defy anyone to suggest that these cases were somehow the exception, that these were aberrational.

He thinks it is unfair--and so do I--that lenders can take taxpayer money but do not have to help homeowners.

What you have done in your plan is laid out specific guidance that every regulator agrees to.

I look forward to working with you as well.

We shouted the statistics as long as we could. We held meetings to develop legislation, but for years, the previous administration just covered its ears.

One of the biggest lessons I have learned over this period of time is that some of these institutions simply will not police themselves and lenders will not modify their own, in many cases. Voluntary efforts just do not work.

I said then that we were going to have a tsunami of foreclosures, and the administration basically said I was an alarmist.

I commend your conduct of monetary policy during your tenure.

I think it will be less costly. We will begin to see the recovery a lot sooner.

But isn't it true that, largely speaking, at least at this point in time, these banks cannot raise the type of private capital that they need?

But for all the successes the Fed has had in carrying out its core mission--monetary policy--its regulation and consumer protection missions have been abject failures, in my view.

I am reminded of the shortcomings in the Fed's regulation of bank holding companies.