Where was the Congress in looking at OTS? What was the last time Congress did an oversight hearing on the effectiveness of the OTS or the FDIC prior to this downfall?

So there was no secondary follow-up by OTS to changes that were requested by OTS.

In both of your assessments, as you looked at this and you look at OTS--and this is a huge example of regulatory failure.

We see over and over again that OTS dedicated a great number of hours and personnel to the supervision of WaMu, yet problems never got truly addressed.

Was it common practice at OTS to issue recommendations to banks and then simply take their word?

Because now we have become criminally negligent if, in fact, we are using selective tools of enforcement for one thrift organization as to another.

What did you intend be bold?

Make no mistake, the collapse of this institution is a very big deal.

Well, your company is gone, and for us to get to the bottom of this, we need to know every detail.

Many banks try to isolate the risk managers from sales pressures. But at WaMu, the first performance goal for the Home Loans Risk Manager... is growth.

Were you ever concerned that heavy emphasis on sales with no oversight risk management was problematic?