>> and allow the investors are there from a risk standpoint the fact that a shortened the horizon for the warehousing, that was i to leave as a risk but against end it was actually the underlying market that was one concerning for us in 2007. ..

or the appearance of the housing movement. >> from my standpoint, i would say that to the extent it allowed more deals to print then probably it resulted in losses being larger and aggregate benda steals not occurred. >> well, that was my next question, whether, you know, city experienced greater losses because of the securitization of synthetic ceos than it otherwise would have. i assumed they were losses on the synthetic ceos as close to cached cbo's your >> in answer to your question, i don't and it extended the housing bubble because it didn't require any origination.

>> i yield back the rest of my time. >> terrific. mesmer and. >> just a follow-up question on our conversation earlier about the regulators heard you had mentioned that you are sensitive to the fact that your regulators needed to convey information to decide about the safety and soundness of the current company. and you attacked about your interactions with the occ and a little bit with the site number that you didn't mention the sec. and i think if i'm not mistaken at the sec is the functional regulator for the investment bank, is that right? >> a u.s. portion of the investment bank. >> i would say the investment bank i think the commissioner may have mentioned this, the investment bank conducted activities on the bank. alan sheet conducted activities with the global market.

local markets with the broker-dealer entity which was regulated by the sec. >> teacher of interactions with the sec? >> i earlier reaction was last. my reaction with the sec was lower than my reaction with the site and the occ. i can't speak to the frequency of interaction in other parts of the firm with the sec. >> and could you talk a little bit about their approach to supervising that entity? the investment bank. >> would you like me to address that? >> either when for both of you. >> i think that i too saw relatively less of the sec unexpired regulatory context good they were there and a lot of times the regulators did try to share information that would send each other their exam report of different trading

desks or different editions throughout the world good and this included not only the occ and the fed and the fed and the occ, but i see on regulators certainly the large regulators would get a piece of that. the sec, in some instances of key pieces of that, but not inscrutably. i would say when i saw them groups of regulators, the fed was always there, the occ was always there. i mentioned the fsa in london followed by legal entities was there. the sec would occasionally be there. in part because sometimes the issues being discussed weren't relevant to the u.s. broker-dealer, but that was my experience. >> thank you. >> mr. thomas. >> a burst of energy is coming around the turn. >> thank you, mr. chairman. >> i asked if he belonged to respond to us over a period of

time of issues that we're dealing with. we didn't talk about it today, but i can based upon my back room for ways and means and the particular profile of your company with such a significant presence outside the united states. what is 5050, 6040? >> for assets or income is a reasonable as month at various overtime. >> i mean, this was worldwide. you folks do in markets around the world and we're working on our problem, focused on irony and repairing our problems. but if we don't do this on a broad international basis, we're not going to accomplish a whole lot. and there's going to be an even greater reaction to people who are supposed to know what they are doing, not doing it on that basis.

now obviously, we try to move some things internationally, but i would very much like to pick your brain if that's a word that i can use based on what she do with one fit in the world and one fit here. what would make more sense? i more than willing to talk about a structure, which is fair, but i also like to talk about a structure that gives us some modest advantage in terms of not being dumb about changes that we are going to make. i mean, when you look at international situation, we somehow don't want to have product and financing linked in a way that you can make a sale on a one-stop shop when most of us, the world operates that way in dealing with folk. so if you're willing to do that, that would be very helpful to me. i just want you make a couple of comments.

in part, about your statement of constant contact notwithstanding the silo structure and communication. in the interview, mr. bushnell, on the question were you aware that the global securities markets, which i believe are under the direction of susan novo width to us here before us earlier. the subprime mortgages due to the subprime mortgage market. in a real-time situation, were you aware that that division or department was doing what it was doing at the time it was doing its? >> omission or, at that point in time for that specific area, i was not -- i knew that we had several different areas where both in risk management and the differences of our own abolition, if you will, were

looking at subprime exposures and increasing loan loss reserves, typing underrating services on the server side, et cetera. after the specifics i was not aware at that time. >> and again, in reference to notes from meeting between citigroup and regulators in late november of 07 quote, effective communication across business was lacking. management acknowledged that in looking back at should've made the mortgage deterioration known earlier throughout the firm. the global consumer groups saw signs of subprime issues and avoided losses as did mortgage-backed security. the business did so, belatedly no dialogue across his face. we're looking based upon all the data we put together with a slightly different profile and reacting to what she said.

mr. bushnell, mr. thompson asked your question about archer and i was going to go through a whole series of questions about capital requirements because throughout this entire period, you are according to the standards adequately capitalized the rating agencies stress test. but i don't think it would be useful in any kind of a dialogue right now. in your response to him, mr. bushnell, i didn't get a feel for what you believe. i mean, i heard should you want to, conceptually expand out. i always love to summerall noncommitted general philosophical discussion. you guys made it and passion plea that you are worthless to god. so i went to get something back in terms of after what she went through and immediately looking that all of you. in fact, i'm looking at

mr. bushnell. i want to know from your experience and i understand that it was an extraordinary circumstance. but then there should be a willingness to be extraordinary and your openness and frankness about what would help understand additional top dog. once again, standards that we have. i'm not going to sql what you think of financial regulation moving through congress because there's going to be a whole series of legislation moving through congress. they do want to enter into a discussion. we'll structure, giving you plenty of time if you'd be willing to respond that. and i know you took umbrage with you not thinking things go down. i believe you said that she didn't anticipate so many people walking away from their houses. that was a statement you made. most of them wouldn't call them houses. they call them homes. and they didn't walk away from

them. they were dragged away from them. through circumstances they believe that were beyond their control, but somebody other than themselves was at fault. so if you put the context of what we're looking at in trying to explain to people, when you get these kinds of responses, it makes it very, very difficult to fairly talk about yound the circumstances you are in. i'm trent, regardless of remuneration actual financial group ford that you can't. that's all. thank you, mr. chairman. >> thank you tom and mr. thomas. all right, commissioners and witnesses, this is a stretch run here. i have a number of questions and i'll see if we can't get you on the nose, pretty quick answers to these. i want to get a sense of your

view to the answers on your matters. for synthesizing complex be a citigroup, an institution that had assets of 690 billion or so in 1988 grew too by 2,722,001.26 trillion off-balance-sheet dominguez .4 trillion. leverage i think by 2008 at tangible, equity assets were 61 to one. when you take the off-balance-sheet at 71 to one. i'm going to west view in your interview he said he spent about 1% of their time singing about cds, which ultimately produced a 30 plus billion dollar right off. is this institution just too big to manage, too big to regulate, to complex? >> that's an important question. either way, i was given different points in time. later in 07 it was much more than that you but in terms of

citigroup being too large, too complex to manage, i don't necessarily describe to that. i think it's more complicated to manage a company with the present range of back dvds, my citigroup is that of a modern line investment can't. i think of examples out there of firms that are just as large, that are perceived to be well-managed and so i don't think that by definition citigroup is too big to manage. >> all right, mr. bushnell. mr. thomas referred to you in a meeting you attended with mr. rubin. this was the november 17, 2007 meeting with the senior supervisors from the federal reserve of new york, federal reserve board, the occ, the fcc, the u.k. fsa, you referred to in the not tonight him expect you to have these notes in front of you but she did a lot of

comments of poor communication across businesses. he said the firm did not have adequate room wide consolidation of its risk factor sensitivities senior management business in risk management did not fully appreciate the market risk of the leveraged loan pipeline that retains super senior cds. these are actually knows. these are verbatim. these are notes of your comments. you left the institution too big to manage, to complex because your comments here indicates a significant level of concern about the ability to manage this well. >> i think very definitely add lessons learned and was trying to -- i suppose for a tour board of directors during the crisis. and i meeting with the regulators as it appears areas that we can improve on given what's happening, it better. as to that relation to complexity, chairman angeles.

it has to do with any server global economy, et cetera. i think that term customer side, when we think of customers in a broad sense, the inevitability of an institution that can service global capital flows will be a reality, whether it's going to be in the united states or somebody else will take us over from that. not by nature will mean that there's multiproduct, multi-types of customers, corporate customers thomas consumer customers. so i think we have to sort of face the reality that we will have these huge global financial and touche and am therefore concentrate on their governance and regulation, rather than saying that we are going to somehow make them smaller. >> all right, let's remove the sign. i want to talk about the super senior cdos but i want to see if i can simplify them. i mean come dungannon commissioner giorgio made a good

point. you are taking a pile of lincoln taken stuff in the middle or the bottom and shoving it to the top and the light becomes cool. and i went to pick up on something mr. thompson said just about intuitive here it is very clear you didn't really underwrite the underlying collateral. i think it was ms. duke who reported up to you or vice versa? you reported to ms. duke. she said her comments in the interview with us we were seduced by structuring and failed to look at the underlying collateral. so just reflecting on the cdos, you take an original loan on original collateral. i'm a real estate person so sticks and bricks some breakfast is what i him a real value, real assets. you take it to the next stage, securities and rbs. you take it to cd on many synthetic cds you and i want to talk about the underlying value of these because the fact is i

don't know what kind of stress test you did, but here's just some basic tax rate from 90 to 91, real home prices to drop nationwide by cumulative of 3%. by the fourth quarter 2007, at which point these cbo super you write off 18 billion. the home prices have only fallen 5%. so i guess what i'm saying is what was the stress test? was at number going down? they fallen from 90 to 91 at 3%. i know is that it does in california. so the question is, how stressful was the stress test? it doesn't seem like much. 5% apologize for the time you guys took an $18 million right off. >> when they comment on that because one of the things are referred to the commission earlier about the intrinsic cash flow model. and that was really the first quarter in october, i believe,

that the initial loss, the eight to $10 billion estimate in the fourth order was disclosed. and based on this model, based on an assumed further decline in home prices, which was produced out of our economics and market analysis group, the book of the super seniors i believe all of the liquidity clothes which were backed by older vintage collateral did not break. in other words, they recovered a future value of car. but because we were required to mark to fill value under the accounting standards and there really was no market, he was really the use of a various large discounts at her applied to those future cash flows that contributed to that large write-down. >> so here's the problem with models.

again, having been real estate. sometimes you can use your argus models. but sometimes these arenas or it doesn't. they either buy your thoughts or they don't. it doesn't sound like this was very binary and calculated in this last ability. i mean, that's obviously did not calculate this very >> the binary references critical because this is an ounce of the money options, which suddenly has zero intrinsic u2 then suddenly have, you know, a substantial loss associated with it. >> but that happens in markets. the mac and based on the market surveillance, the market was commanding a very, very small premium across not just banks like ourselves, but other market participants including insurers. in hindsight, we didn't -- we didn't develop the models. we didn't click through only to the rn bs, but withdrew to the underlying. >> the real assets.

>> and the real factor that actually drove the losses, which is something that is extremely difficult to model was the fact that it was actually massive ratings downgrades, which because of the underlying characteristics of the rmbs and specifically the cdos backed by rmbs ordered the allocation of clash flows associated with those downgraded securities. and as a result, effectively these cdos got started -- because they were actually backed by these mezzanines transfers of rmbs. >> right, which were subordinate to the senior, which goes back to the very nature of the product. >> that was something that the industry did not allow them to some degree given the challenges that the rating agencies have had is rather behavioral. when elected to downgrade, securities bible school

notches -- >> but lead does know. but melts and gold doesn't. and so the underlying collateral was a huge flock in this. let me ask this question about how things were bugs. here's the basic question i have been a really goes to how you put these assets because it goes to how citigroup has a report profit and executives are able to take compensation. i think we understand the fact that you really couldn't tell the super senior tranches come a correct? they didn't sell much. >> at thing in the case of liquidity, we most of which predated my time in the risk management group covering the business and my understanding was it wasn't an intention to sell and the liquidity. there were other deals with the super seniors were sold to european banks, u.s. banks as well as -- >> at part? the >> yes. >> what penetrating volumes? here's my -- >> the typical trade would be

very tricky. in other words, a conduit would buy 500 million in one transaction for a billion. it was common to do billion-dollar -- >> this is something we can explain in a return interrogatory. here's my question. if you have these assets and i guess the spring of 07 for the first time under was that the new fast nebo, if you did have to literature level one, level two, or level three assets in the user level three assets, correct? for which there is no discernible market activity and pricing. but you put them at 100%, which underscores about city until you did write them down to the profit, which then results in compensation. so the organization and the senses booking profits on these values. by the basic question. i make it simple for everyone watching this. if i am home i think is worth 200,000, but there's no market for it and no one will pay me 200, it's not worth 200. so i guess i will ask and i

guess if you have a quick answer, how the heck did you put the subpar and keep them there so long? >> i'm not an accountant, but i have been involved in the discussions around that. and to my standpoint, we looked as i said in my opening statement, we looked at comparable analysis and other deals were pricing at similar levels, that we were able -- we were able to buy protection from bond insurers at very, very high spread levels. and in the absence of an observable market, i think it is acceptable to use the most comparable analysis that you can and in what was always a very ill-equipped and non-traded market. [inaudible] >> all right. i think i want to probe this because i want to understand why it across the industry these things are both at levels that

were just not reflective of reality. there were a that accent put and so i think we like to explore that. yes, go ahead, mr. maheras. >> i think he said they were booked at par. and they broke apart, my recollection is when these things were trading at par, when their when their observable court to think what the gentlemen are referring to is when the market stopped and there were observable trading activity, that's when they became -- other methodologies to mark them for which resulted in them taking current mark downs. >> i'd like to at least look at where the avx was. money see if i can move quickly through these. i'm what you just talk about risk for a minute and then i have one final set of questions, numbers. and that is, mr. bushnell foreign minister dominguez come

a legacy if if i can get the right document here. in october 2006, your financial control group but i now know that's addressed to you about liquidity put. and they say, the liquidity risk amulet street is the risk of citigroup must purchase the abc p., the asset that they cannot be quickly be sold to minimize the loss. part of liquidity risk is in the city downgrade which can than $226 billion of the quiddity put exercises and our balance sheet simultaneously. in this scenario, citigroup is faced with concentration risk. did you do anything about it or look at that or at that point regis stock? >> no, no. that working paper engendered a lot of discussion, re-examination of how we were treating it. there're many more people involved that were on the

distribution list. and again it was decided that the product was priced appropriately, marked appropriately because we were seeing products that had as many comparable element, sufficient comparable element at higher levels than that. and again, as i said before, the credit risk component was marked as if it was already on the books. >> all right. here's the final list of questions. mr. bushnell, and going to submit some questions to you. you made a comment on october, 2007 internally and it was a presentation to the yours and so i am going to ask him questions

for you about that presentation, which was basically review of the current environment. and i do want to ask you so you might begin preparing. good noted significant events into one of these to asset management sons having their problems. and i really would like to get a picture of these things happened in 07 what you did to react to those you saw get that to you. as my final question i would like to see if anyone might to comment on it. i want to understand the timeline of these are questions i will post to mr. prince denon mr. rubin tomorrow. june 30, as i understand it, you still have everything marked correct apart? on july 20, in an earnings call, your cfo mr. clinton basically tells the world you've got $13 billion to sell prime

exposure. on october 15, on an earnings call, it's announced and i believe it i can't remember who made the announcement, but again citigroup is $13 billion of exposure and of course november 4 we have 55 billion. at what point did senior management know that her team had become 55? when did the folks of the ceo level board know that 13 had become 55? >> if my recollection goes into that comet comes into the definition of exposure of what we thought was possibly lost. so i think that presentations to senior management, certainly the super senior numbers was not included in the july number that you've referenced there. and we started to have

discussions with the in early september in terms of the senior management standpoint. and we had some more tutorials and not dates that struck me as late september, maybe the first week in october. >> is it fair to say the ceo of the board did not know about the liquidity put in the direct senior exposure time is super senior exposure prior to that september time. >> i think that's fair. >> anyone have a different recollection? >> minus pretty close to david's except i recall hearing about the exposure sometime in august and immediately elevated. i can tell you if it's august or late august, but it would be around that month, you know, within a month of david's recollection. >> okay. i assume you have nothing to add? >> i haven't been involved in those discussions. >> those are all my questions. any other commissioners have

things they want to put on the table? >> jim demint, thank you for coming today. we appreciate her time in your answers and we'll have additional questions and we appreciate all it very much. we pursue the public and all the commissioners for their hard work. this meeting is recessed or adjourned until tomorrow morning at 9:00 a.m. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations]

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>> the former coach or is that the 9/11 commission hosted a conference tuesday on the state of the intelligence community. the event marking the fifth anniversary of the creation of the office of national intelligence. this portion includes remarks from deputy national intelligence or common david shedd. it's just over an hour. [inaudible conversations] [inaudible] >> if i could ask you to grab a seat. i've been reminded that the universal requirement is silence. no cell phones. we try to do our best to actually cut you out from the rest of the world. good morning, everybody. i'm the president of the bipartisan center. on behalf of our former senate

majority leaders, tom daschle, tom dole howard baker is a real pleasure to welcome you here this morning to this important discussion on the state of intelligence reform. the bpc was founded about three years ago based on the relatively simple idea that despite all the forces that are pulling us towards the edges, there are still rooms like this, people of goodwill, persons of goodwill who are interested in coming together to hash out and try to develop shared ideas insurance solutions and some of our nations problems here at an addition to putting together those detailed policy ideas we also take the next step of asking the people who work at those too aggressively advocate for those ideas both as a government denial. and we're in the midst now several different policy areas. we're working on energy and climate change. we task force working together on iran's. with a project on transportation policy, a group that assisted up in the fall issue of the national debt. and we are most gratified to be here with you all today talking about intelligence reform, when

governor kane and congressman hamilton a year or so ago after they could continue their work on behalf of the 9/11 commission that the bipartisan policy center were thrilled with the most fortunate to have michael allen, who most of you know that in our national security preparedness group which focuses on a host of issues will be discussing today. so with that, i really had the pleasure of welcoming someone who i know was known to you while, congressman hamilton, you want to kick us off? >> thank you very much, jason. good mortage love you. thank you very much to come into this state of intelligence reform conference. tom kane and i are delighted to have each one of you here. the remarkable turnout this morning for this conference is certainly evidence of the interest i think of the importance of the topic that we are going to address. i want to thank jason grumet and

his colleagues of the bipartisan policy center. it's been an extraordinary privilege for us to work with them and they've been supportive in many, many different ways. their whole mission is to foster an atmosphere where bipartisan cooperation can occur. and i think all of us who know this time pretty well with say that somebody an important mission. there is no area where this is more important then the national security. and no area in national security words more important than intelligence. tom kean and i are pleased to be associated with the bipartisan policy center. our national security preparedness group is an independent group focused on helping improve the security of the nation are tom and abroad. we strive to be helpful to our nations national security

policymakers and to promote a bipartisan approach to this task. the members of that group will just read their names because it's an extraordinary group of people. and two of them will be participating way, fran townsend and tom gannon. but in the clute ed meese and tom ridge, richard thornburgh, dave mccurdy, jim turner, peter bergen, bruce hoffman, spence abraham and stephen flynn. together, all of us are pleased to host the conference today to discuss the state of intelligence reform. it's now been five years since john nader ponty was sworn in as the first director of national intelligence. and it is us an appropriate time to look at the record of this dni, dnc tc and other groups. tom and i am not 9/11 commission

report recommended of course the establishment of the dni and we are supporters of it and believe it success, the office is critical to our national security. the purpose of this conference is to ask whether we have made progress in intelligence reform, whether we as a nation are safer because of it and what needs to be done to ensure its success. we've assembled i think a remarkable group of experts. i want to thank each one of them as they will be participating this morning. congresswoman jane harman who was one of the key players on the hill in helping write the intelligence reform act. admiral blair will be with us a little later, the director of national intelligence. admiral mcconnell, former director of national

intelligence, general mike hayden who served of course in a variety of intelligence capacities, including his first deputy director of national intelligence and cia were. fran townsend, who in the white house helped shape president bush's legislative proposals to create a dni. john mclaughlin, former deputy or the cia, steve kimba, undersecretary of defense who handle defense intelligence matters for the secretary. walter pincus, as an article this morning if any of you have read it already this morning and the post on intelligence reform. he's covered those issues for many years for the "washington post." and john gannon, former deputy or cia foreign intelligence. i don't see how you could put together a better group on intelligence reform. i want to thank and introduce

our first speaker, david showed heard david has played a leading role in intelligence issues throughout his career in the cia and especially in the last six years where he has served as senior director for intelligence of the national security council where he helped shape the intelligence reform act. and that the office of the dni, where he has served since it inception. first come is the dni's chief of staff and now is the deputy director for policy. from 1984 to 1993, he was posted overseas in the u.s. embassies in costa rica and mexico. as a bachelors degree from geneva college, a master's degree from georgetown university school of foreign service. please join me in welcoming david shedd. thank you. i've [applause] >> good morning and thank you,

congressman hamilton, governor kean. thank you for hasty in this great event in which we have an opportunity to evaluate five years and to intelligence reform. where we stand and perhaps more importantly where is it headed? as representative hamilton was doing the introduction, it struck me that my association with intelligence reform and underwriting of the intelligence reform act. back in 2004, after the 9/11 commission issued its report reminded me that i want to take credit for what's working. and i have no idea who was behind the things that are not working today. last night i also want to thank the bipartisan policy center on the national preparedness group for taking on challenges like this that are so critical to our

nation. i recognize their interest in national security and the u.s. intelligence capabilities in the 9/11 events in particular and the establishment of the 9/11 commission to evaluate the causes of the tragic attacks on that fateful day and provide recommendations so that indeed america can be safer. just -underscore a little bit on my own experience, 27 years with the intelligence community as a cia officer. so i've lived essentially into different areas. the cold war era, soviet union in the 1980's through 1990 or so. and then, driven by a passion for better understanding of the intersection between intelligence and policy. my makeup or the impact of what i am today was shaped by the

iran-contra affair, something that are presented as hamilton is very familiar with in terms of the hearings that he read. in central america at that time, i came to a profound recognition that the constitution and then informed by the legislative process has rules that cannot be broken without consequences. but it instilled in me a passion to move from strictly the intelligence operatives in the field to one of utter understanding how policy and intelligence come together. and so i was blessed by an experience of 4.5 years and the national security council staff rising to senior intelligence direct her from 2,122,005. clearly a critical period in our history.

the unfolding history of intelligence is in fact exactly that, and i'm folding history that i will term as evolutionary vice revolutionary. our nation has struggled to identify what it wants from intelligence. over the 60 years of this evolutionary process, the process of granting the dci at the time that direct care of essential intelligence greater authorities has been something that has meandered from public debate to congressional issues, to the executive branch trying to figure that out. the fact is we have wrestled for decades with what the centralized leadership of the intelligence community should look like. i would add that to a large extent it is a history wherein

change, reform and improved oversight grows out of adversity and self-examination. in other words, it's doing the bad times that in fact the intelligence community changes and is driven to consider where shakeout. you have to pipe church committees in response to cia domestic abuses. that led to congressional oversight committees being established, both in the house and the senate. you have what i've heard he referred to, the iran-contra. that led to a profound impact on how covert action is reviewed and oversight is provided for you. the importance of its immigration to the president's foreign policy object is of only increased since the 9/11 events. i would argue that covert action today is even more complex than it was during the cold war period. and i will let director blair addressed that in more detail.

and then of course the 9/11 failure. the failure to integrate foreign and domestic information, concurrently or very shortly after you have to the 9/11 commission report, yet judge silberman and senator chuck robb issued their report on the intelligence failure in iraq. the inadequate collection and especially poor analytic trade craft on the weapons of mass destruction that never were. the wmd commission five years ago made 74 recommendations and president bush accepted 70 of those 74 recommendations on which the vast majority were going to direct your negroponte and my cave in to execute on. there were three fundamental behind the director of national intelligence. i would submit it is the need to

improve intelligence in the intelligence sharing that must take ways. secondly, a judgment that the job is dci a director of central intelligence was in fact too vague given the demands of managing an organization to which i still belong, the central intelligence agency and its complexities. and finally, sci integrating the foreign domestic intelligence or information acquired could not fall to a dci who at least in the minds eye of our nation spent most of his time running as eia, which have a history of abuse inside the united states. those i would submit are the three reasons for the creation of the dni. understanding those three reasons will in fact, i think, through the discussions of the two panels, we safer today where is the dni going, help inform

where we look at where we go over the next five years. so that brings us to the intelligence reform and terrorism prevention act of 2004. the ir tpa and allow me that acronym now through the rest, but that's not it means. it's got to create the conditions for a more collaborative, more integrated intelligence community under a director of national intelligence to improve intelligence delivered to the president, the national security council, the congress, combatant commanders and were fighters into our state, local and tribal law enforcement elements. information sharing balanced with demonstrated mission needs with that outdoes the core of this improved, collaborative model within the sub one irtpa. what did someone not to?

irtpa reject good the department of intelligence considered to be a bridge too far in a time of war. so what it means and was an awkward, federated model of 16 at the time of the passage of the act, 15 dea was added after the act. 16 icier limits today with all but one reporting is a dual report to a department head. only one, the director of central intelligence agency reports to the dni and there is controversy today us to it that even means. so irtpa, as much legislation usually is was in perfect at the out that. but it did was create tensions. it created tensions in which

gave the dni department like responsibilities, some expanded budget personnel and acquisition authorities, but also made clear that the dni could not aggregate the authorities of any department head. does it play out clearly in your mind with attention rest then? as a result, the dni, by design, straddles everyone else's turf. in fact, given the structure of the intelligence community's, ambiguities in the irtpa, reinforced to some degree was that the dci's in the past recognized. personal relationships and trust among the leaders are more important to successful collaboration than just words and statute or an executive orders signed by the president.

therefore, the intelligence reform and terrorism prevention act of 2004 model requires a successful dni to rely very heavily on the personal and visible support of the president, strong personal relationships with these colleagues in the cabinet and among hill members. here's what i summarizes the core challenge emerging out of the intelligence reform act. that core challenge for the director of national intelligence is going back to 2004, there were in fact very different views. and i would argue remain very different views on how the intelligence community should operate. much has been said that what applies for the intelligence community and the creation of the dni is goldwater-nichols. for those who don't know what goldwater-nichols says, it was the law that eventually created

in dod join miss or joint duty and what is often referred as the color purple. i'll let mike mcconnell and others who have lived that part explain it in more detail perhaps on the panel. but here's the problem, the tension lies in that what was given to the secretary of defense, there was no secretary of intelligence in which an operational way he could execute this model of a goldwater-nichols approach. so the real questions are, is the dni able to implement information sharing, drive the innovation of foreign and domestic information, allocate intelligence expenditures against the highest future challenges of our nation and continue to enhance analytic trade craft in this model? i personally believe we can.

let me digress with a little story. it's a story taken out of genesys in the bible chapter 32. and there is a would-be patriarch, not a pitcher at that time, jacob, who was about to reconcile with his brother esau. the night before, in that chapter, the story goes that a stranger shows up for his campus. that stranger wrestles with jacob, not for an hour, not for two hours, wrestles all night long. jacob holds onto this unknown stranger, an angel of god. and in that wrestling match that goes on, it is jacob who pleads for a blessing. he says don't let says don't let me go until i receive a blessing. and so, all throughout the night, the rest i match goes on.

i'm really, he he receives that wrestling and the rest is history in terms of abraham, isaac, jacob. i tell that story only because it reminds me of the wrestling match that's going on here. with intelligence reform. it's one where there is not a clear blessing over what it should look like. there are natural and at times i'm not sure tensions in the system as they say. and so invite you now to think with me about several of the assumption about intelligence reform and really raise some questions. i was being kidded earlier in the morning with some coffee that i'm in a worse position because i get to open. i don't think so. i'm actually in the best position because whether what i'm saying now or in a question that you have that i can't answer i can say denny blair will answer them later. or the panel will take them on.

so, my assumption will also be tied to questions that i think are worth are suing, whether in this forum or separately. i have five of them. the assumption, the intelligence reform act, the 20 that wasn't perfect. statutes by definition are a kludge of compromises. but in fact we need to work collectively to implement it. the assumption, the director of national intelligence is here to stay. i hope all my intelligence community colleagues are hearing that. the dni is here to stay. so then the question is, how do we improve the dni's effectiveness in this model and related to that, do other components in the intelligence community truly understand what it takes to have an effect if

dni and are they prepared to support him? second assumption, the role of the dni is evolving. simply look at the 60 plus years of intelligence since the national security act of 1947. i mean, i'm start by i joined the intelligence community through cia in 1983. i'm here nine years have your president nixon gave the dci the authority to bring the budgets together of the intelligence community in 1974. so here's my question to the assumption. the assumption is the role of the dni is the bald thing. ..

to meet these requirements, that is provide more integrated product for that user base of intelligence to informed decision making. hurrah argued that enables 9/11 insurance that user base have increased dramatically right down to the house m.d., the

state and local tribal law enforcement entities of which there is 18,000 in the united states. and fourthly, the ic consists of approximately 100,000 personnel and approximately $50 billion annual budget. not including military intelligence personnel or dollars. the odni, note these numbers, consists of approximately 600 to 50 personnel at its core and the circus at 1,200 missions support activities of which of those 000 individuals 600 her in the national counter-terrorism center. so size to the total size used and asked to do in terms of the size of the dni, an issue that you hear of often.

these numbers i might add have been stable in terms of little to no growth for the last three years. the question i have for you then would is it not a more effective or appropriate question to ask is the odni in carrying out the missions where bridget was established? rather than to argue about the small numbers. lastly, assumption. in the absence of authority to my direction and control over operations which the director of national intelligence doesn't have, the dni would see that require a disproportionate amount of support from the president, his cabinet, and the congress in order to effectively carry out or most effectively carry out his job.

the question is simply, do you agree with that promise? were with that assumption? if so, can the dni succeed without that support? so let me turn briefly to the value of having the dni. let me throw out of the proposition that we shape the arguments incorrectly when we say, could a dci. april 2005 through the director national intelligence open for business, good a director of central intelligence have carried out these list of things and going to talk about. the real question for me is would a dci have done these things?

now, in some instances perhaps you can still ask the question could this be 11 have done this, but i think it from a logical question is given at what was an act dni and job -- dci requirement, could he have spent the time in managing the community the way the dni can do semi full-time on with his responsibilities have been principled intelligence adviser. the flip side of asking that very soon question is the value added of free up to the point in managing a complex organization nearly full-time is truly value added to where we are today. i would submit, yes to both those questions.

the dni is uniquely positioned to focus the power of our intelligence community resources against national security talent as yet that power to bring together coalesce and move out against it this challenges. no single dni element leader today in my view is able to do that alone. but for a director of national intelligence we would not have addressed matters of a collective national security import such as the establishment of ic strategic intelligence on counter-terrorism which, counter proliferation, counter intelligence will, the afghanistan strategy as it pertains to support to it, iran, north korea, among other topical

areas. in other words, you have heard it bantered around their the creation of mission managers. managers who look at the capabilities, the shortfalls are gaps to what's required against these very difficult perplexing goals. in giving in the president what he needs. i tip my hat to mike mcconnell for the work done in two particular areas that i do not believe again dci would have emphasized in his daily job. one was the reform of fisa, the unintelligent surveillance act which was dated from 1978, obviously technology has changed a bit, and it took the wheel and

the power of the congress to bring that in what i would call a modernized version of that 1978 act. secondly, he focused the community and a ultimately our nation on a comprehensive national cyber initiative. in those two areas again i do not believe that any single agency would have pursued in those independently. was the value in those three things alone? the value is that they focus mission before and head of a process. fisa need to be brought into the 21st century, the threats posed as you heard director blair, director mcconnell, director negroponte, cyber threats are real and there are with us. the establishment of those mission managers is another

factor that has provided tremendous value as well. the revision of executive orders, one in particular executive order 12333, executive order signed by ronald reagan in 1981 was revised and signed by president bush in july 2008. several of my colleagues worked on this with great intensity and with great fervor because when we saw in the modifications of executive order 12333 from 1981 to a post by our tpa was an opportunity to clarify with in the primer of that law for ambiguities that exists. war existed prior to the signature on that amended executive order. for those who down now and i believe most of the room knows

this executive order 12333 is the notional bible for the intelligence community. billions in the roads and to speak. two national intelligence strategy's, one under john negroponte and the hall of 2005, and one at this last summer in august of 2009. both these national security strategy is provide a very macro road map for with the intelligence community needs to go. and in your packet some day i believe you have a copy of it. there are six whitmore at mid -- there are six mission objectives the help inform the budget allocation, personnel allocations, and the bottom line simply the priorities on which the director of national intelligence goes to the president and says this is what the community is focused on.

that does a handshake with the national intelligence priorities of remark that the president then signs off and says these are my priorities in these specific countries or transnational issues. security clearance reform. i leave this effort, it's a still work in progress but tremendous progress has been made in moving the data lines from extended many months of the top-secret clearance allq the wy with tatoos and three months in terms of the average. more is yet to be done. a partnership that is done with the office of management and budget, office of personnel as well and john barry and with the dot. two-point to approximately million clearances' per year. what single agency would take that on?

yet everyone is the beneficiary or its. is to enhance his mission. the enhanced acquisition oversight, this will very quickly take you into a classified discussion with efforts well under way, i can a work in progress on providing better choices from a better oversight to big acquisition. providing leadership within the intelligence community on science and technology research. again, one of all things happening in the individual agencies. a missing piece to it was a brain it together so that one part of that intelligence community would have a perfectly good overlap with another element of that speech of the doing today. providing investment strategy for that s and p efforts. finally, just again not an exclusive list of the things i

think our value added, but it is what i call the big policy issues were in a single element of the intelligence community is focused on it. that would be space policy, export control regime, just to name. so this is where no single agency the corner on that particular market but each and everyone is a beneficiary of the outcomes will cover those policies and that. so before opening them up to your questions, and i will take a refusal that and i can answer a gavel passed on to this dni, let me wrapup. what does the intelligence committee look like five years from now? i will in large measure leave that up to my immediate boss, director blair, to address a

noontime. but here's the thing, i have to ask myself and i think it's worthy of this group to consider, can we reach a consensus to refer back to the blessing that jacobs was looking for. but can we reach a consensus on what the ic should be including and what obstacles remain in achieving success cracksman -- what does success look like for a director of national intelligence? see, because i think on a daily basis we are into managing expectations. i was saying to steve cameron before recanting here, it's funny, there's an expectation and particularly in this town than you can fix it all and it

can't fix it fast. the reality is the problems are better -- the challenges of the intelligence community are by definition complex. there are difficult wu. fisa reform was hard to do. here's the bigw3 surprises. it's supposed to be hard. there's a balance with civil liberties and privacy. obviously it's hard to do. where's that balance? has shifted over the last 10 years? has shifted within a post at 11 in friends purse is a pre 9/11 environment? the debate over more law enforcement approaches to terrorism rss marra intelligence approach to terrorism -- those are hard and very healthy debates to have. but there is a certain expectation that in the creation ofç the dni and i'm sure by now

and in this room, but just outside this room and expectation that he can fix this overnight. it cannot be done. but again it can't be done for very good reasons and because of this complexity and the tensions with cole hamels pitching for the philadelphia phillies. a new workout program, rededicated himself, threw more in the off season. versus jason marquis with the nationals. cole hamels will have to come u, big as the number-two starter for the philadelphia phillies behind roy halladay. my second swing, let's go to chicago. fausto car mow narcotics carl, had an unbelievable springo training, but jake peavy is the story here.l the chicago white sox, we know they have great starting pitching, if peavy can be that guy, then this team can win that division pretty handily. going against fausto carmona isy a tough chore because he has the unbelievablely hard 90, 95-plus sinker. then to boston.tte. two veteran, andy pettitte again pitching for the new york

yankees, a vet ran guy, against john lackey, a veteran guy, but pitching for his first time in this historic rivalry. >> already the red sox bullpen is getting used quite a bit. a longer start for lackey would certainly help them.the we will see you following the yankees-red sox wednesday,s a again, when the game ends. with john kruk, i'm karl ravech, you thing swings for wednesday. >> big names in the news in the national football league. our nfl insider john clayton joining us now to give us the very latest. john, ben roethlisberger in the news down in georgia. what's the buzz around the nfl? >> well, just waiting to see if there is going to be a charge or no charge because whether there is going to be charge nor charge will determine where this is going to go. if there is charge, severe consequences remain, the possibility exists that roger goodell could decide that he's going to suspend him pending the outcome of the case. if there is no charge, then its a matter of trying to see where ben is, have him sit down with the commissioner, the steelers,

and then probably there will be a civil suit that's going to be a distraction. what it comes down to now, it's up to the district attorney to decide where this is going as far as ben roethlisberger, and right now roethlisberger's hoping there is not going to be a charge. >> football fans might have hard time discerning what's going on with albert haynesworth. is he or isn't he on the trading block? >> i think he's on a holding pattern at the moment while mike shanahan determines where this is going to go. they kept albert in the loop from the standpoint they did offer him to the philadelphia eagles in exchange for donovan mcnabb. they at least kept him abreast of, that but what's not been rationalized now is where they're going as far as the defense in regards to haynesworth. shanahan wants him to be a nose tackle. haynesworth doesn't want to be a nose tackle. and so at the moment there could be the possibility that there could be a trade, but right now i think they're evaluating, calming things down, but let's put it this way, he was shopped, and if the eagles wanted him, haynesworth could have been a former redskin. >> who wants jason taylor? >> right now the new york jets

want him bad. in fact, they had him in on wednesday, had him all through the city. they took him over to the stadium. they really did a big recruiting trip, trying to get him and pushing the idea that rex ryan can put him as a pass rusher to add maybe 15 to 20 sacks to 127.5 that he has. miami, of course, would like him to come back. there may be some interest by the new england patriots. right now the big push is for the jets to try to sign him. no deal is going to get done now. jason wants to go back to the miami area, talk about things, meet with the family, but right now the jets are pursuing him and pursuing him hard. >> for more from john clayton, go to the nfl page at espn.com from the great city of seattle, john clayton, thanks. >> thanks. >> good news ahead of the match, wayne rooney's back for manchester united. see if he can lead the red devils past the bavarian challenge of bayern munich in the champions league semifinal. martina navratilova was one of the toughest competitors in tennis history.

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for back-to-back national championships and back-to-back >> it was the hardest challenge that they faced all season, but the uconn women overcame ahe 12-point first-half deficit to beat stanford 53-37 to win their 78th straight game and lift the ncaa trophy for the second straight year. maya moore the tournament's most outstanding player. and then the national championship uconn women's team

left san antonio on wednesday and arrived at hartford-bradley airport later in the afternoon. they were greeted by fans before moving to gamble pavilion in storrs for a pep rally. geno auriemma talked about the game while he was in texas. >> it's just improbable that it could happen, that we could do what we did. the fact that this group could hang in there and pull together and find a way, i told them last night, i love coaching this team. i loved everything about them, enjoyed every minute of it. this is going to go down as one of my absolute favorite teams ever to be around. given everything that was involved, everything that was at stake, everything that had come before it, i would have the say this one was pretty unique and much, much more difficult than all the other ones. >> so the huskies accomplished something that only john wooden's u.c.l.a. team featuring bill walton had accomplished previously, back-to-back

undefeated seasons. take a look at the margin of victory. uconn defeating its opponents by nearly 33 points per game. the six-point win over stanford the closest margin during that 78-game win streak. martina navratilova the all-time winningest singles tennis athlete announced wednesday that she has been diagnosed with breast cancer. appearing on abc's good "good mg america," navratilova said she was diagnosed in february with an aggressive form of d.c.i.s., considered the earliest form of the disease. her prognosis is good. according to the associated press, a surgeon at u.c. san francisco said, "there is only a 1% chance of anyone with d.c.i.s. would die of breast cancer." >> i was shocked because i was so sure that it was benign.be i found outn and i was devastated.stat physically i couldn't think. i couldn't move.ink i was useless. but that's where it helps tohat' have a good support group, and

my best friend isd my ob-gyn. she's the one that called me with the news and said, okay, we're going to make plan now. i said, what do we do? how do i get rid of this? the good news is d.c.i.s., which is a non-invasive form of breast cancer, and i have a very great chance of a great recovery but a very small chance of it coming back. >> navratilova won 167 career singles titles, more than any man or woman ever. and she is arguably one of the greatest doubles players of all time. among martina's singles win were 18 career grand slam tietd ls, nine at wimbledon. navratilova was inducted into the international tennis hall of fame in 2000. quarterfinals of the champions league. manchester united lost the first leg 2-1 to bayern munich. they need to score some goals. wayne rooney was supposed to be out a lot longer. he is back. would it be triumphant? he lays the ball out for gibson. in the third minute, it's all

level on the aggregate. manchester united up 1-0. then the portuguese winger showing a touch of class. he beats the keeper. 2-0 manchester united. they would go to the semis if they could hang on. but robin with the volley. bayern munich lose the game 3-2, but they go through on the away goal rules. they are headed to the semifinals. >> rusty's here. bordeaux and leon first,-ever all french quarterfinal winner would get bayern munich. in the 45th minute, our first goal of the game. the moroccan grew up in france, born in france, but plays for the moroccan team. it's all about aggregate. it doesn't matter what you score in this game, it's what you score in both legs. away goals count. it's complicated for the average american, but the bottom line is bordeaux needed another goal, and the top goalie for the

frenchman with great save. so lyon advance 3-2 on aggregate despite losing the game 1-0. >> top stories coming up, including the latest from georgia on the ben roethlisberger sexual assault allegation. there is a new twist in the case. plus two big names in college hoops say sayonara to college basketball. where their stock is in the nba draft next. you hold this?

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>> keeping you current on espnews, along with max bretos, i'm steve bunin. maurice clarett will be released to a community. >> based correctional facility. thaddeus young is out with a broken thumb. aroldis chapman will pitch triple-a ball on sunday. and manu ginobili reaching a three-year extension with the w spurs. our top stories on espnews right now. john lackey preparing to make his red sox debut and against the yankees no less. the red sox and yankees prepare to tango on espn2, four teams already done this afternoon in the majors. we have the highlights coming up when they're done at the par three contest at the masters, where it's actually not a good thing to win. nobody has ever won it and the green jacket in the same year. why that's bad news for jim furyk potentially. >> local police say they've

wrapped up their investigation into ben roethlisberger and the

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the pitching coach his impressions. >> i saw a tough guy and a guy use his stuff extremely well

and not predictable at all. he's a real tough guy and he ground it out. he didn't have his greatest command, but he threw the ball well and made pitches in tough situations again, as you're building a mind-set, what does that tell matusz. >> he said it in spring training, when we're in backfield and witching a triple a game. i didn't want to send him back out and he basically told me i'm going back out for 100 and don't come get me. i think that's the mind-set we have to have for these kids. don't look in the dugout, but he keeps it all in perspective

as well. he moves on and he's ready to cheer for his teammates and make sure he gets the job done and he's right there pulling for him. it was encouraging for younger pitches to watch because even though he's -- he managed the inning. if you nail over a game and over a season, that's how you end up a winner. >> he trusts his stuff. yesterday, it was unconventional, some of the stuff he did, but don't make any mistakes about it. what he did was when it came to crunch time, he attacked some of their weaknesses. he got some guys on their strengths early and what a lot of those young guys will do is start firing at the hitter's weakness, and you can't do that in this game was somewhere done the line, you're going to have to go to the weakness to get out of a jam. the less timeous go with it

early, the better off you are later in the game. >> guthrie goes tonight, 200 innings last year. what does he have to do to try to get there. >> he needs to get ground balls, number one, but he needs to get ahead. he needs to keep pounding the strike zone down in the zone, down in the zone. it's pretty simple with me for him. i don't want him to go overboard with the soft stuff. he needs to get his fast ball working today and use his other stuff sparingly. >> pitch counts are one thing, but it's how you compile those pitches over the inning. that's much more the issue. but minimizing the damage, that's what it's all about. here's the starting lineup for the baltimore orioles, matt garza will be on the bound

facing this lineup and the right hander,. >> first time last year, over 200 innings. he wanted to work on his fast ball command. when you look at the scouting report, he's a tough guy. last year, again the record very, very misleading at 8 and 12. he had the lowest run support in the american american league. he can flat out pitch. he throws in the mid 90s. he can pitch to both side of the plate. he's had had a great spring and how do you pitch against the east? not good against the rest of the teams but arguably the best team. matt garza, the 26-year-old in his 5th season and third with tampa bay. here's a look at that oriel

lineup. brian looking for his first hit of the season and jones and markakis. luke scott will lh, matt weeder had a big night. garrett atkins at 1st base and adam jones, last 7 games, buying time numbers. the orioles last night will look to do a better job. 7 of the runners on runners base last night were in scoring position. here's the first pitch. and it's 1 and 0. >> they only hit 193 against him, so i guess that's why tejada is 5 for 10 and jones is

4-10. >> watching the game last night, brian appeared to be a tad late with the timing. until he gets that back, he's not going to be brad roberts. >> i think that goes to the back problem. >> 1 on 1 on roberts, jones and markakis will follow. he fouled it straight back. matt garza, a 1st round pick in 2005. he pitched in college at fresno state. he did make it to the big leagues as a twin, but one of the best trades this rays club has made. >> that was two years ago. he won 11 games and they go to world series and bartlett is the mvp. >> a high fast ball, he overthrows that. >> let me put it this way, the

mvp of the rays, not the league. he solidified the defense. he's young, only 26. 8 and 12 last year as jim mentioned, but what jumps out is era of 3.95. so brian usual leading off the game getting deep into the count. >> for a kid you can't really run on him. 7 stolen bases attempt and they were only successful 3 times, so for a long time, he does a lot of things well. >> this will be the 6th pitch in the setback coming up. >> roberts working against garza garza. >> birds fly home for the home

opener. >> brian roberts has worked the count full. he did not walk last night, nor hit 0 for 5. >> you make a great point. if brian was the top of his game and he had a full spring, you wouldn't want to walk him because you know he can steal bases. but he will problem get fast ball. i would be very surprised if it's anything but that. >> pena gets a -- toward the bat. adam jones coming up. he had a huge night last night in the season opener going 3-5 with a double and a home run. adam really had it going and what was encouraging, not only of the night overall, but he really did concentrate.

>> we saw that in the last two days. kind of funny to play a night game on opening day. >> well, they don't have to worry about weather here. >> they can not only play a night game, they can play 3 straight days and know they're going get them in. the long remaining dome. >> fast ball, got it, swung through it. >> you're going to have to get a longer bat to hit that 96 miles per hour fast ball. he didn't put it in play. you can't do much with that. >> one out, nonon. adam now 24 years old and 3 season with the orioles. kelly who had the big double an doing the catching -- you would think when a guy swings at your fast ball like that, you might throw him another one. maybe it's going to be inside. yep, and it is.

buckner says he -- in time well, i tell you what, you better get it going in 96. that could have been a home run. >> yeah, but you're a pitcher. >> everybody thought it except the umpire at first. even adam thought he swung at that. >> there's a base hit and again he goes with the pitch. that's the way -- the more he does that, the more he's going to -- here's a look at the defensive lineup. mr. utility, longoria, brignac. >> here is nick markakis who also had a good night last night. he had a double and walked a

couple of times. nick had a patient night last night. one of the walks was a very close pitch, but it shows he stills that confidence in his eye despite having a tough year last year. >> it's outside, 1 and 0. >> you can kind of trust if you were hitting or pitching last night. that wasn't the case last night. longoria at 3rd. >> he's tired. >> he jogged around the bases, though. >> was that a shot to the upper deck? good eye by nick. >> i was thinking about a lot of thing today -- >> by the way, we're all proud of you for being a gamer. you always wanted the ball. >> i was watching david letterman. right to my room. that's because the pollen in the northeast has exploded and

you get to fly into that. >> that and a lot of issues. >> 2-0, ball three, but the gamer you are, you always took the baseball and tonight you took the microphone. >> what i was pondering is when the rays come to baltimore, that we can try to show you how far in cam den yards -- feet would be. i know our hall of fame producer would be able to come up with that. >> maybe we can get rick dempsey. now when he's hitting because that will be too good of a target. >> maybe that will be a sign to go and measure that. >> that's a 4-pitch walk. 2 on with one 1 and miguel

tejada will get a chance. he's 202 tonal time hits list. duke snider, 201 and then tommy davis at 200 and then beyond davis, he has cracked the top 200 of all time. he's getting into elite company. >> then he got 199 hits in the national lead and led the national lead. the most multihit in the national league. >> and he takes inside, 1-0. >> go back to adam jones at bat, one of the toughest innings for any pitcher is your first inning, and then all of a sudden you've got the face

markakis. >> there's a line drive. that will fall for a base hit. jones being set. he'll not throw toward the base. that was a it founded like tejada broke his bad. >> he hit a scream we are the bases loaded off of rafael soriano. tonight, hits it softly, oral get on the board, 1-0. garza not very happy. >> adam jones beginning the year with 4 hits. the orioles give jeremy guthrie a lead before he takes the mound. luke scott, he hit a home run last night into the right.

nolan ryan hit 24 combined between triple a and the big leagues, but luke, 25 for the oral and last night he started right off. this one goes 452 feet. >> not longoria, but still pretty good. >> pretty close. >> let's see. that's really only -- >> after his training regimen in the off-season. there's a strike as he looks one over. luke played in college at oklahoma state. he goes back to oklahoma during the off-season and he gets in shape by chopping wood because he wants to simulate the swing. he's paul bunion. and it works for him. >> i'm not sure there's a

stronger oriel. good fast ball. >> so down on the count, 1 and 2. >> let's look at our pitch track. watch the glove right to the glove. there it is. pretty good -- you know when jeremy is pitching well, his command is very, very good. >> one on and one down. and he got him. high fast ball. big strikeout for garza. it's nice to be able to get struts when you need them. >> and the difference there, he got ahead of luke scott.

garza last year averaged 8 and a half strikeoutsouts for every 9 innings he worked. >> i was talking to jim and he worked out at fresno. that's where he hails from, he worked out with a lot of youngsters. i wanted younger guys to push me. that's what you like to see from a younger pitcher. it's all about run support. he pitched well enough to win 16, 1 games for them. >> he had 12 no decisions last year. many of which could have gone the other way. matt weeder is safe as the ball is dropped. thrown toward the plate, not in time toe get markakis, a bad mistake by the rays. the inning should be over,

instead, it's a 2-0 oriel lead. >> they play him very well. a little double clutch right here. the throw is not a real good one. i think they're going to give it to pena and i think markakis makes it 2-0. >> so one of the problems that matt garza had on his earlier career was these kind of situations. how do you handle adversity. >> he played left field last night, nolan, as roberts was, brought along slowly in the spring. nolan because of his akeel lees surge following his season, he had the surgery in september. -- runners on 1st. -- he had the surgery on the 23 23rd on his akeel lease and he

was brought on slow in the spring. that's too fight, so the orioles take advantage to get a second run and have the opportunity for a. >> he started with 0-22 and -- >> trembley looking on and hoping for a turnaround tonight. when you're going into a series, the first goal is 2 out of 3. take that and move on. it hurts, there's no doubt about it. you're two outs away from a win in the opener, which makes it harder, but you still have an opportunity. tonight is the pivotal game. >> then you've got to be the guy that 13 games. >> 1 and 2 on rimeing and he

got him. so garza gets out of it without any further troubles. guthrie goes to the mound. gecko see me sir?

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first first. reid brignac is the 2nd 2nd baseman and he'll bat 9 9th. >> trump the trop, he's never won here even though he's pitched well here. he turns 31 tomorrow. why not give yourself a birthday present. . >> home runs allowed with 35. he also tied for the major league lead in home runs allowed on the road. as he gets a strike to jason bartlett. tampa bay lead off man. bartlett now 30 years old. there's guthrie getting ahead. >> i think the one thing he would have learned is if you

make quality pitches, you can get these guys out. >> roberts toward the bag. he got him. and one down. last night carl crawford came up. he got one base hit and it came at his last at bat, bases were loaded and one down and mike gonzalez, a base hit which last night was a single. they have changed it to a double 2-run school and tampa walked off with a win. >> the key is getting that third out and also as jim palmer said, it's about location. crawford told me he remembers jeremy when he had that location and command and if he sees that inside to lefty, that's what he's good at, that's when you know jeremy guthrie is on. >> they pointed out that the

one thing about good-night think is how often he's victimized in terms of where he misses in the strike zone. however, rick said you don't change who you are. he's a power pitcher. he needs to throw the fast ball. it matters where it goes, not straight and down the middle -- he got him. he went up upstairs. >> i think this one, you think it's going the break. it doesn't, but at least you're losing your -- you learn from that. crawford can't learn anything because he'll probably never get a pitch like that again. so he says i've got the get my arm up a bit and it's nice to make bad pitches and all you need is as many as they're going to give you. >> the right to roberts, jeremy

guthrie on a 9 pitch first inning.

>> the orioles, it's amazing

they had 7 extra base hits last nights. >> jim: and 3 runs. 11th runs and last year, as you know, jim, but the 2 and 4 batting, up there with the league leaders. >> 4 singles, 4 doubles, but all the runs on those home runs atkins and roberts on the 2nd 2nd against garza. 2-0 orioles and the high fast ball is 1-0. atkins could believed in his last at-bat last night. garrett atkins, new on the team. >> we'll get to know him a bit as he skies it out there in the middle of the diamond and bartlett takes charge. well, the home opener only two

days away, the time to become a season plan holder is right now. you can enjoy a wide variety of carpet benefits, including a brooks roberts figurine dipped dipped in 14 caret gold. for all the details, get online at www.orioles.com. >> we'll have a dual ceremony. do you have that ring on tonight? >> no. >> which one do you have on. >> i have the '83. >> brignac at 2nd and a quick out. after a 7 batter first inning, here's matt garza. >> he worked with kim who is a sports psychologist to handle

moments like that where he didn't pitch poorly. so you know when you're an overachiever, you didn't want to give up the runs and sometimes you have to do -- 2 down, there's brian roberts, his second at bat. he hat a long at bat and he takes an off speed pitch for a strike. look at that right there as we mentioned. last night they got the 3 home runs off of him. he was 6 and 2. lester hall day. >> the nationals weren't so happy the other day. >> 1 on 1 on roberts. >> well, he had a choice and he could have thrown like president obama, and he chose not to. >> he's got to get off the

basketball and play catch. >> he's into the hoops. >> yeah, i will say he was trying to intentionally walk, so his glib has always, our president. i tell you what, if you try to throw 60 feet and you don't do it a lot -- >> somebody told me last year for the opener when vp biden threw out the first pitch, he was warming up for 25 minutes because he was nervous. >> that might be overkill. you've just got the aim high. >> 3-1. i don't think brooks is going to have any trouble on the throw. brooks is going to throw a knuckle ball. he's got a great knuckle ball. i don't know now, but he used

to. >> 2 outs and known on. orioles in the 2nd. smaller crowd here tonight. and he fouls it off. they've adopted this cow bell where they encourage the fans to bring cow bells, and it's amazing how having some props can make the noise -- just elevate the noise level even though it's much smaller crowd than last night's sellout. before the game as jim and i were working on our score cards, they want you to bring the cow bells but be nice about it. >> another 3-2 is fouled back. >> so do you know what that etiquette is? if you're a yankee fan, don't

ring it in his ear. >> there's a real cow bell. >> they had to get in free, dressed like that. >> that's like will fer real on saturday night live. another 3-2 pitch coming to roberts. and he fouls it off. what a night he has for prolonging at bat. still looking for his first hit of the year. he's 0-6. >> well, we were talking about it last night. if he stays healthy, he's going to get back to being brian -- he's just too good of a player. and that's the important thing. >> another foul in and out of the glove. >> when you're checking out the stuff, it's not always about

the radar gun, but when you can throw anywhere from 90 to 97, you've got a chance to be very, very effective. >> garza and shoppach will decide what it's going to be. i think they're going go inside with a fast ball. and they get him. so roberts is down on strikes. s that the 3rd for garza and after a tough first, the birds go three up three down in the second. [sound of waves crashing] [upbeat whistling in background] discover all that northwest florida has to offer. seventeen hidden beaches, one revealing destination. fly southwest's new nonstops from bwi airport to panama city beach starting at $99 one-way. (ding)

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felix was told he would start but that changed last night when he strained his rotator cuff. as a result, nolan gets put on the lineup. the question is today about his akeel lees hill. he told me it's a bit of a process. it doesn't matter if it's dirt or turf. it's a matter of keeping it loose. >> jim. >> jim: and here's an example, especially late in spring training, if you're an

outfielder at triple a, who knows how long it will be. >> tejada, all of a sudden who is disappointed to be -- >> there's no question there's depth in triple a, but there's depth on this squad right now. there's 11 guys that feel like they could start, but he only has 9 positions. he was asked whether he feels the left position is unsettled, let's take it for what it is, nolan was not ready to go. he was hobblely, so felix had a great spring training. he gets the start, but in no way did one guy lose a job or the other win it. >> back on it is reimold. pena will cruise into 2nd base

base. >> the new hitting instructor said if he ever starts doing this, that batting average is going to be a thing of the past. but, again, he gets a warning track, maybe a little unsure of the footing. >> well hit, but certainly catchable. that's one of the balls that probably does catch. especially on the turf because he has all -- he just couldn't jump high enough for the shoppach double last night. >> one base hit. pena at 2nd base, 1 down and guthrie from the first time with the stretch and that was up in the zone. ej upton, the rays will hope for more consistency, but he's still 25 years old.

he doesn't turn 26 until august. he was tampa's first round pick in 2002 and he was the second overall pick in the draft. when you see the impact he's made, you're like, wait a minute ever wait a minute, who passed on him. the pirates went with brian bulling on the and he's 0 and 5 total and upton has played in a world series. >> he had a great rookie year. he had 300s, stole bases and then had a shoulder injury in baltimore. in the post season in 2008, but since then on base percentage has gone down and power has gone down. stolen bases, he had 42 of them. he's an awesome outfielder, we

saw that last night. >> his bast year was 2007, the year before the world series run. he batted 24 home runs that year. and argute hack, but he filed it back. >> the guys with the best numbers, the guy at second, he was at 400, pena, and then upton with the home run. >> mean ya 1 out double. >> you know what the pitch is -- well, he's thrown it but it's a slider down and away. >> foul ball. >> so, again, he goes with a stinger, tries to get a ground ball. >> jeremy guthrie also gives the appearance he's going at 200 miles an hour. he's a maximum effort kind of guy.

there are those that feel because he is so intelligent that maybe at times he thinks too much, instead of just letting all the ability take over. there's a slider. a more patient bj upton. the first by guthrie and here's tampa bay now. >> you can't throw a slider much better than that. here's pat borough. his second year with tampa bay. did not have a very good year last year, but he's got the big contract, so they're stuck with him. there's a strike. his 11th season in the big leagues, the second with tampa bay after coming over from the phillies. guthrie with his 2-1 out.

>> and there's another strike. >> and you look at the pitch that upton took for ball 4 and there's two things going on there. if you're guthrie, you're pretty happy with the pitch because the he swung, he would have missed, now he's 0 and 2 on the next hitter. and i would think at this stage of their careers, the orioles look at upton as a more dangerous hitter than burrow. >> if you look across the board, average rb irks, more strikeouts. >> hopinghoping for a play near the dugout, just can't reach it. ran into a photographer at the rays dugout. >> so atkins coming over as far

as he can get and right into that. he wouldn't have got it anyway. >> you can see the ball peeling back a little bit. last year playing most of the time at 3rd base for the rockies. >> corner infielder, pena is at 2nd. upton at first with one down. guthrie turns and looks looks pena back. tampa bay in its win, each hitter 1 through 9 got a base hit. it's rare when every hitter has at least one hit. just off the plate. 2-2. >> they only did it 7 times last year, 2009, gives you an idea it doesn't happen that

often. >> jim: two hits last year for tampa bay. tejada will go to the bag and step on it there and guthrie gets out of it, a double a walk one left. two complete at the trop with the birds leading. anncr vo: ...call emergency services... anncr vo: ...collect accident information. anncr vo: or just watch some fun videos. anncr vo: it's so easy, a caveman can do it. caveman: unbelievable... caveman: where's my coat? it was suede with the fringe. vo: download the glovebox app free at geico.com.

orioles with a 2-0 lead. the birds look advantage in the top of the 1st inning.

guthrie strong so far. brought to you by verizon, the network with the most 3g coverage and we're pleased to welcome the manager, dave trembley. >> tremendous, i'm trying to get these wires straight here. >> that's why we called wired wednesday. >> you got that right. >> when i got the the hotel, you just came from a jog and you look like you went 10 miles. >> i was trying to keep up with everyone else around here. i take a look at palmer in the work out room and i can have breakfast and come back and he's about half way through. >> jim's got a bad sore throat. it's nice to get 2 early runs off matt garza.

>> well, i've liked we've worked the count and got the pitch count up and made him throw the ball over the middle of the plate. dave, you mentioned so many times during the spring, spring training is what it is. i'm not suggesting that jeremy guthrie is throwing a switch, but is that a -- he's got command and making good quality pitches. >> he's locating and moving the ball around and pitching down. that's what millwood did last night. it's not what kind of stuff you have, it's where you throw it and how you locate it and so far jeremy is going a good job on that. >> what's the word on the shoulder. >> he's okay. i would stay away from him. he's just -- when he throws, he irritates it. it's kind of like inflammation in the shoulder.

hopefully tomorrow it will be better, but i'm going to say away from him tonight. >> one thing, jones went the opposite way, tejada went the opposite way. you do that you're going to get those pitches to pull for power. >> if you -- you've got the cover the other side of the plate and keep the pitcher honest. >> dave, we appreciate it. we always appreciate your time. let's do it again on the post game. >> let's put a w in that column. >> nice to join us. markakis hits hit to third and he gets markakis and two men down. >> the orioles host the blue jays and the first 10,000 fans receive the plush chicken cow. the sunday is the first junior

orioles day. parents, make sure to register your child. for all the details, www.orioles.com. look at those beautiful chicken cows. that's one of the most popular give aways. >> my stepson is autistic. he loves their fries. they're different -- they're awfully tasty. >> final game against toronto. miguel piles it back. >> i thought they were playing monday, tuesday, wednesday. they will play a day game down in texas and then come to baltimore. >> there you go. there's the chicken cows. my dogs love the chicken cows. bobby and say dee.

they will chase them for hours. i didn't name the chicken. the chicken cows are the chicken cows. the chicken sandwich is delicious. miguel day tejada flies it back . did give up some home runs against the phillies, but spring training doesn't really quantify -- you can't qualify them i guess because -- >> migmiguel tejada is hit by a pitch. last year, garza hit 11

batters. >> well, righty to righty, that ball really runs in. of course, maybe that's why he wears that guard. it's really kind of in the back of the hat and miss that protection. i suppose if you're going to be hit, that's one of the places. it still hurts, but you do get to go to first. >> miguel talking with carlos pena at 1st base and luke scott with a chance. the orioles have a base runner with 2 down. fast ball tainting the outside corner. tampa bay, as they did last year, they don't expect him to go the opposite way. we saw pena punt against the -- for a 1st base hit. there's two ways to look at

that. you can help your team, but tampa bay is more concerned with luke scott getting on base than him bunting. >> 11 hits to left field last year. the one thing -- i've watched him hit the last three days -- he's made an effort in batting practice to stay inside the ball and when he hit the 452- foot home run, it was a hitters count. he looked for a ball in the middle of the plate and sent it sailing. >> power against power, blew it by him, luke couldn't reach it. >> you don't see the kind of stuff that he has. that conditioning program made him throw harder. >> jim: he hung out with all those young college players to

work out. >> he was young, but he said i really wanted to take care of some of the. [crowd noise] brian mat does did it and he went to the institute in phoenix and. >> jim: swing at a breaking ball. a third he did not swing. so luke picked up that pitch and able to check in time. he did check. garza's father is not only in the army. right now he is stationed in afganistan. his father rudy is a sergeant major in the army and assigned to afganistan, so growing up in a military family, he probably has some toughness from his dad to be able to pitch well. >> the mental part of the game

that you know so much about f. you don't have that, the talent will not be enough. >> that's really something you have to work on. hickey getting out of the houston organization with madden became the manager here an he said i want somebody that's had a lot of success and he's got the work with roy os weld and he's had some battles on the mound, but garza has really mature matured. >> strike 3. scott thought it was outside. 5th strikeout for garza. [upbeat whistling continues] discover the unexpected beauty and man-made relaxation in northwest florida.