[inaudible conversations] >> your opening statement is at this stage nine you wrote that the stated income, those

documents that no document loans were an estimate to you. you said it was an absolute because of your experience of the former banker you were concerned about those types of loans for some time. he then came to ots, your examiner underground said that stated income loans was a fraud product. your staff in d.c. said that neither loans, that's where there's no income and no asset figures given were imprudent. you have the authority is direct your up ops to do something about it, but she didn't. so what not to? can you put your mike on, please. >> most of what you said is absolutely correct. i don't recall those hearing my examiner underground hearing it was a fraud project. >> you believe it was a fraud product he said he >> i did and i question that at the up. >> you were the director, weren't you? >> i was the director.

>> were not injured? >> from the outside the thread is making anything was a product that was in existence on the west coast of the united days for more than 20 years, dating back to the 1980's and that the institutions, which offer this product has minimal to no loss experience with it. it was also a common product that was used -- [inaudible] >> of stated income and options. >> it was your experience that these were flawed product? >> i wouldn't necessarily call it a flawed product, but it was a product that i was uncomfortable with and i was influenced by the fact that the product had been in existence for more than 20 years with positive experience and west coast institutions.

[inaudible] >> it was. it was foreign to me. [inaudible] >> i grew up in an era where the fundamental principles of credit administration were characters collateral capacities and conditions. >> used the word [inaudible] you have this procedure here. you have this approach of a number of things that are still in existence. as head of the agency, did you not to say we're going to change this? >> i could've said that. >> why didn't you say it? to i chose not to because of the institutions preceding the 2225 years. >> so you regret it? >> in hindsight, i regret it. >> that in hindsight, and foresight. >> were appointed hindsight today and i regret it.

>> i'm afraid this is -- what kind of efforts to jimmy to change these? did you issue a temporary new guiding? >> know, did not. as i said, i was influenced by the fact that there were 20 years of experience, a positive experience with these instruments. >> d. -- so washington mutual is originated hundreds of billions of dollars in these adjustable-rate mortgages, ots allows them to engage in a set of high-risk lending transfers in connection with the loans. is that low seizure love, as low as 1% to one month will replace borrowers. they were qualifying borrowers with lower lane payments then you may have to save the lower recast, allowing borrowers to examine parents for the vast majority of the cases, resulting

and negatively amortized loans. on and on. your people, in the field, make these kind of findings. this is exhibit one c., one d. and 180. were you here when i read the findings? >> i was not. >> well, let me read them to you. i'm going to again read the summit longer context of these are from 1d and 1e. underwriting of these residential loans remains less than satisfied or he peered level of sfr's underwriting and are samples of an ongoing examination issue. you were under the ots is unhappy for several years. one of management has found difficult to address.

let me mexico 22,004. this is what your folks sound. presidential quality assurance issue 3003 a origination. closed critical rates of 30% of certain loans. 2005, single-family residential loan underwriter. this area of concern, means several years. securitizations prior to 2003, a horrible performance. we have continuing reading done at the 2005. appearance regarding a number of underwriting to, with the evidence black of clients and bank followings. next, 2005 the main concern was the number of underwriting exceptions of issues that evidence last, a level of deficiency left unchecked through rows of credit quality

foreclosure, of concerns are increased with the risk profile of the portfolios. it was risk including concentrations and options to high risk are worse than the one limited documentation loans. loans with subprime or higher risk your terrific and 2006. next page, underwriting errors continued to require management. overall we concluded the number and severity of underwriting errors remain at higher than acceptable levels. 07, underwriting policies perceived to subtract were in need of improvement, particularly with respect to the stated income level. your people are finding all this stuff. based on our review of 75 sub timelines originated by including the subprime underwriting practices remain less unsatisfied tree.

how's that for an understatement? given that this is a repeat concerned, informing management of underwriting must be promptly correct good. for heightened supervisory action. year after year after year, why should they believe it was going to be taken now. this is 2008. a single-family residential loan losses due in part to downturn and real estate market, but exacerbated by geographic risk layering, liberal underwriting, that's 2008 july. and then in exhibit number 20, 2006, within the employment risk management, what fraud risk management at the enterprise level as in the early stages of results. heck, they're just beginning to

manage the fraud risk in 2006. 2007, risk management factors of the homeland group during most of the review. were inadequate. we believe there were sufficient negative credit firms that have elicited more aggressive action by management. how about more aggressive management by your agency? previously noted, the misrepresentation. gigot, now you're talking fraud. the risk misrepresentation stated income loans has been generally reported for some time. sometime this has been going on. on and on, year after year. so what do you do about it? what does ots do about it? not one single formal enforcement action against one

move in 2004 until 2008. >> that's not correct, mr. chairman. >> until the end of 2008 is correct. >> there was a formal enforcement action for bsa flood insurance violence that led to, which was a formal action include -- >> that's not what we're talking about. >> it also included the dsa and in a money laundering violations. >> that the money laundering violation. were talking about what they're doing in terms of underwriting practices, credit practice here, mortgages they were issuing. no board resolutions required, no memorandums of understanding is required, no fines. so the bank -- i forgot what the number was. they came out i think it started a cobra and used the numbers of how many warnings, how many finance, how many deficiency is year after year after year. >> i think he cited a number of in excess of 500 items.

>> now, that is normal for ots? >> is what normal? >> what i just described for the go ureter after year of the signings he don't have a formal actions. all you say as he told them they have to do better. they say they'll do better, they say they'll do better. they don't. >> my response to that, mr. chairman -- >> you're the cop on the beat. not a ticket? not a fine? how many years do you think you would go under? is it acceptable to? >> washington mutual is a too rated institution until early 2008. >> it took you long enough. >> specifically formal actions are not utilized as institutions that are one and two. >> well, that's in your hands. that's your decision not to give them in informal warning. >> it may be common but that's

ots's determination not to take any formal action at all. as a tool come is your decision and you were reluctant to increase it to a three, even though the ftc was pushing you to do it and when you did finally, finally decide in early 2008 to push it for me to to e3, he didn't do anything publicly. you violated your own policiescome issuing memorandum of understanding instead of you have poured action, which was public, private instead of a memorandum of understanding which is public. even after all these years, all these violations, you finally decide in early 2008 you're going to push them for me to to e3. you then don't make that public, you don't rate policy indicated what you traditionally do which is to have a memorandum of understanding, which is a public document. you delay that for my debut apologized in an e-mail.

you said you're so sorry you have to send the e-mail. try them twice on the phone. now, i've got to tell you it is not only feasible enforcement, it is pitiful enforcement. do you want to defend the? go-ahead. >> i would simply point out that the fdic had a resolute examiners, that that washington mutual throughout the entire period of time that you're talking about and that there was no rating of this agreement of washington mutual being a too rated institution until 2008. >> another was a disagreement. so for another six months after they were pushing you to increase it, did they make these kind of frenzy or after year after year, the fdic? that was your agency. don't say the fdic was sitting there. your agency has primary responsibility. as a matter of fact, you push them away, your people because they didn't have primary responsibility dirty push them

away. you wouldn't even give them a desk, by the way. and your people are the primary regulator and you don't want fdic to be meddling around in your backyard. now, let's go back to your agency. year after year you make these findings. is that in your judgment adequate regulation? >> those are all items that are taken from examination report and they're sort of taken out of context. >> other not. i read the context. i gave you the context on these. >> i believe the 2006 examination report states that in the cover letter, that risk management practices and internal control environments continue to improve in 2005. >> i read you 2006. >> ray.

in 2007's general comments for the year 2006 through the first quarter of 2007 indicated that there were continuing credit challenges that operating results improved, that there had been a cease-and-desist order with bsa, aml -- >> i was the money-laundering issue. >> that's correct. >> i would save that is offensive. but anyway, let's talk about what they were doing there with mortgages. >> it also says that the policy was satisfactory and trends were negative. >> you're using that as a defense? >> embodies that as a defense, i'm simply pointing out that the examination result in some indicated that the institution still deserved for the years up until 2008 to two rating that he was given by the ots and that

was agreed to the fdic. >> the fdic in february 2000 finally persuaded you invade an effort, by the way, sometimes they persuade you to go to e3. but nonetheless, finally february 2008, you've got a three rating. what happened? why then is there not the usual traditional memorandum of understanding so-called lay public? why is it done? >> i don't know to tell you the truth. i don't know why it took someone to implement the ammo you. i do not know. >> why don't you know? that's a huge issue. you know you're coming here. why don't you know that? you use that as an excuse for no formal enforcement action that they worry too inside of a three and then you come in front of us and say well, you don't know why it took so long until you finally decided to move it to a three as a memorandum of understanding, which is public

failure for another what seven-month? and you don't know why. >> there is a great deal of back-and-forth here to >> not with fdic. they were pretty she knew her to go to a truce. with is the back-and-forth with? >> i think the back-and-forth was with the ots, the fdic and brass regional management on the west coast. >> it was an fdic. they were pushing hard. are you at all embarrassed by this? >> i am. >> a good good >> i am by nature, mr. chairman, humble person. i'm a casual person and an informal person. and it's not all unusual for me to address the people who run the institutions that i supervised was responsible for supervising by their first names if i know them, particularly if i'm 10 years older than they are. >> is the apologetic nature of

that e-mail -- >> i make no apology for that e-mail whatsoever. >> you make any apology for the six-month delay in making public -- >> i don't know if apology is the right word, but i regret there was a six-month delay. >> you don't know why? >> i don't recall now. it's been two years and i care remember yesterday, let alone two years. but i regret that it took so long. >> this is not some ordinary institution. you know what the largest -- largest institution that's ever been taken over by the fdic bank. so this is not something for asking me to kind of look back at some institutions, which was some small institution you care remember. this is the biggest bank failure in history. the mac that's true. >> so, you tell us he can't remember why it is that at a

critical time you did not -- you can't remember why it is? >> i was not personally involved in the negotiation of the components of the ammo you and i do not know, i do not recall and i don't think i ever knew exactly the reason for the length of time that attack. >> well, mr. maybe you can tell us. >> mr. chairman, my recollection was a downgrade from a two to with three was done on an interim basis for this was before the examination findings have been written. this was a poor kids move quite frankly to move this brown a two to a three as far as we seen. >> the ftc wanted to do it earlier than he did >> i don't have that recollection.

>> my recollection was any differences we had in late 2008, may 2833 or a four, not a three. i think there is general conference based on my recollection and that was an interim removed from a proactive remote that the examination had concluded. and the board of resolution was required -- now you can argue that the board resolution may have been stronger, but remember this examination was ongoing. they were still developing facts and working towards an enforcement action. >> let's go back to mr. reich. his own memo in july. this is july. i've been wrestling with the issue of then mou versus a board resolution of the result of a discussion in my office. i've decided that mou is the right approach for us to do in this situation. we almost always do a mou for a

three reinstitution unless someone were looking over our shoulders they would probably surprise we don't already have one in place. you bet you. july 3, it wasn't until when september that mou was finally made public? so there's another couple months. you know, mr. reich, this is your memo, your e-mail. you'd like to be able to say a board resolution is appropriate. so apologetic, you don't even see that. and then he says, the investment community would be surprised to learn that one doesn't already exist.

now you can say whatever you want, mr. dochow about this was something in progress, there was a decision that was made in february, is that not true? wasn't there a decision made in february to move them from a two to a three? >> yes. >> okay. >> my recollection may not be precise here. it's been quite some time. and i've had some limitations on access to document, but i believe at that point in time did not require initiation of a mou. but instead at that point in time, ocs polity was consideration of a board resolution or a mou and a policy requiring a mou even placed after that time period. >> i'm just reading the memo from mr. reich. we most always do a mou for a

free rated institution. in the salon were looking over shoulder which i sure as hell wish they were, they would probably be surprised he don't already have one in place. that's your e-mail. pretty good evidence. senator coffman. >> thank you. mr. reich, what is the stated income? >> if a loan where the borrower states his income, obviously, but i believe that i've been told that there's actually a little bit more documentation behind stated income, low dock and no-doc loans that is obvious. those are catchall terms. their ketchup a terms, but it's my understanding that there's a little more documentation dinners in the popular. >> each loan where the income is the stated income. >> i think in many cases there

is background checking of reasonable for the amount of income reported depending on the person -- >> he said there was background checking beyond -- >> that's what i have been told. >> now i'm not saying that was the case in every state in come, but that there were -- there were some procedures which existed by institutions that may have stated income taxed loans, that relied upon other hikes have reporting agency to sort of verify the reasonable income for certain types of occupations. >> and not have been your experience of the stated income loan? >> i think mr. reich is very accurate. i tend to go to programs. they migrated over the years and they were offered

inappropriately to some customers. but what an institution makes an income loan in a program, they should be getting -- the expectation is checking psycho stores, checking appraisals, doing the past. they have outside data sources for doing that. that's what the examination process referred to. so there are additional checks. it is not a customer walking and saying i make $100,000. let's get a loan. this is not the way it's done. >> you're not saying that's the way it done. you're saying that's not the way it's supposed to be done. >> it's not supposed to be done that way. >> why did you even have stated income loans? i mean, if i were to borrow money, i have to fill out this whole form about where's my bank account, how much is it and how much i make it has to provide documentation of what they make. i mean, it's the one thing that

i think everybody america it knows when you get a loan, you have to verify to the person that's making a lot of which are income is. >> and i do the same thing, senator. and i think that's the appropriate thing. but i think we also need to keep in mind the way to explain it to me is stated income was urgently for high income individuals that income would target document for a w-2. now, what happened is over the years it became commoditized. and the gses started accepting the programs. and even the automated underwriting are accepting several terms. and so, it became the situation for the documentation that kept the file quite frankly was sometimes urged. as you heard earlier to them it was purged not because it wasn't considered.

it was purged because a state income loan have to operate under a given program in order to qualify. the program couldn't have that information filed. >> how would you have a program he said he don't have a w-2 for? >> death because the way it's been explained to me is that where the gse is in the secondary market accepted these programs. >> i can understand why they accept the program. their attorney get as many mortgages as they could mortgage back securities to make it all work. i was saying why would the train to accept that? >> i can tell you that it was standard part is and that those loans were made and to the extent they were sold on the secondary market without recourse, even with recourse, we focused on the recourse quite frankly. >> you didn't focus on the riskiness of allowance? the >> we focus on the riskiness of the bank in terms of what they had to repurchase. >> in other words, it's sunday

and just a book, were not going to give you any of this program. we're just taking it in. he would look at that is something to consider in your oversight regulating institution? >> no, no. i may be misunderstood the question. we obviously are concerned with what institution ability to prove the ability of the customer receiving a loan. and that's why the agencies on a unilateral basis issued the guys, subprime guidance, to make sure you document it. >> mr. reich, i assume you agree? to start out 20 years ago, the program for high wealth people and i'm going to. i was ready to go on, but i'm going to stop.

the easiest person to show you what they've been doing an obvious that they're going to be the ones with the biggest mortgages. it made more sense the other day they received started with people who are self-employed. i don't get the why someone -- what would you say a high income person makes? >> while senator, when i set high income i was including self-employed. >> with a high income person? >> it was buried upon the type of loan they were getting. >> what would you consider the program you said were starting a program? >> high six or bigger incomes. >> i cannot believe that anyone with a high six income would come in for lunch and doesn't keep documentation. ..

let me just make sure i get this in context wamu was one of the big institutes the surviving. in fact they were the biggest, right? >> that is correct. >> they had at one point of the thrifts to was supervising 25%

of assets under supervision for wamu assets? >> approximately. it is it hard for me to believe you didn't know 90% of all of the home-equity loans you were doing or state income? >> i don't know if it is hard for you to be for naught but i do not personally keep track of the composition of each segment of their portfolio. i was focused on asset quality overall and not within each component of the portfolio. >> the percentages are alarming. but i also think that it's fair to keep in perspective different products. >> i'm trying to keep this in perspective. >> what's take the home-equity loans. if you and i went into a bank and one of the home-equity lines of credit those become automated approval process these.

you fill out your paperwork and put down what your income is, the bank pulls more fico reports. those programs lend themselves more to that type of underwriting. they are smaller in dollars, large and volume and the credit score, credit reports the loan-to-value ratio work historic with the most productive ability to repay and those loans. >> why not just that people with their income was and have verification for it? >> i don't think anybody in this room outside of maybe wamu or other banks in california which did the practice this would come they say what is your income and they say okay i tell you what i'm going to check for fico score but you have to document

your income, you don't have to give me a w-2 form or anything else. i just don't think -- credit cards, i've never seen that as an experience for me and again i realize it started with industry and maybe foreign good reason. but i'm thinking what point in the regulation capacity do you say -- we do a lot of hindsight in this staff. i'm not trying to do hindsight. i'm not going back, but this is just so big and i think everyone would say the state loan. the two regulators who were here earlier kind of went wow. and clearly when they are the folks from the risk managers that testified the other day

that were concerned about this and reported their concerns supply and trying to figure out with this can happen again. this is like every time something like this has come down over history the standard answer you hear -- i mean if you were around for watergate or anything it's like everybody did it. everybody did it. and when you hear that that is when i get very scared because what are we going to do here in the senate so that we deal with a concept everybody that did it that we are a nation of law, not of everybody did it. would you just comment on my concern. >> of the stated in come loans have since been ruled unsatisfactory and i am not

entirely certain of that but i believe the regulators have found a limited state income once the category of loans in the future. >> that is what really concerns me. that is what -- you get the point i am trying to make? that is what concerns me. here is the policy everyone agrees was a very bad policy. here is a policy that was so widespread that 90% of the home-equity loans were policy that with all due respect most people say was bad. i'm not talking about people in this room and talking about regulators, people in wamu, every time i've read something people say from experts. folks like you were. they say this is not a good program, not a good idea and you allow the situation, 90% of the home-equity loans and option arms, i hope the numbers will

change, 50% of state income loans. and once it comes to leave everyone says my god, we've got to stop this. with all due respect your explanation how this could make some sense and everybody said this has got to stop so what mr. reich my plan is not -- okey we found out now we did it. my point is when you are sitting up here you are trying to figure out how we stop -- what is the next stated income alone? what is the next program where we see people say everybody does credit the fault swaps. everybody did xyz, everybody took $500 out before they went home. do you see my concern here? >> i am dustin your frustration. >> thank you. >> you make an excellent point, senator, but let me give a

little flushed to some of your comments. they are absolutely on point. we saw with the credit cards first came out as an industry in the modeling worked great for a few years and failed miserably. we saw with basil ii that these mortgages needed very little capital. there was a very little risk everybody was overcapitalized. so what we find is that the financial system to the extent it is free market it develops products for the short term and that is difficult because you have that balancing act between having a free market capitalistic system and safe and sound system. to have someone simply rule this part is good a this part is that has consequences. so it is a very difficult dilemma. >> frankly i am concerned because i don't want to see over regulation and i know you don't either but when you have situations like this like to say

it is a systemic problem and it was a systemic problem right to the top we are going to solve regulate the markets we don't need a regulation, it was pretty widespread. let me ask you though at some point it was said earlier defect, the numbers i will not read again -- there were so many of these types of loans and the chairman said we even have specific cases people went in and redacted the w-2. at some point dustin this began to look like fraud from somebody's point? >> i will comment if i may. actually i think it raises a different issue. in addition to the potential fraud. it raises the issue of income and incentives and what i mean by that is the state income

programs generally gave the lending institution a higher margin and even though the customer provided the income and the bank may have considered the income when they were redacted from the program the bank was entitled to the higher income. now the customer may have come in and applied for the state income program and requested that and the bank had information of the bank i think the issue that decrease in my mind when i heard a federal year was what is the incentive here? is the customer being given a higher cost and product they shouldn't have been given? >> see here is my concern that this is the -- i was in a hearing yesterday, afghanistan and the problems at $8 billion we did nothing to show for it and as a way to deal with this at such a high-level that we get away from the kind of coldblooded issue that happened.

it was because of the basil and national leadership in the country singing we should have a free market. we didn't need regulation. that is the equivalent to the football game and just see it will work don't worry. every now and then that isn't a problem but alan greenspan is one of the parents saying this is a problem that causes me dismay. we found out that the stated loans doesn't work but this is at a look coldblooded level. in the and they took people down and we know that the wall street people and encourage people to get mortgages, we get a mortgage backed securities and we know we can move them down the line and the chairman said toxic waste flowing down the river away from us. in that kind of an retirement, and we have a compensation program as you said which says to the people and the chair man put up a year earlier you have a helluva lot more compensation. this is all happening. but in the end somebody has to

say i'm going to break the law. i'm going to commit fraud and do something when you have 90% stated loans otherwise from the top of the firm down everybody has to know what is going on. these are not dumb people and it is my concern is o.k. i understand it was the environment, bad environment they were not getting good guidance from their national leadership. i anderson and they were doing techniques that had been used for 20 years and we are okay and everybody's compensation is of the more things we do and wall street was singing their siren song about mortgage-backed securities and we can all make a lot of money. but it took some people in the building this is a target for confinement, to people in the building to basically say i am going to take the money and put it in the state of loans. there are cases where everybody involved, every loan would go to

some place and say just tell me what you want, fill out the forms and we are off and running as a regulator if he were regulating this now and new about this isn't it time to send some notices to the justice department about referrals? >> if we see evidence of the fraud we should refer to the justice department. >> mr. dochow? >> in fact, senator, one of the things i've been known to do is require institutions themselves to make referrals also. >> of the problem is a slight use it systemically people -- you didn't know about this 90%, 50%, and hindsight is 2020 but not taking hindsight just saying today if you knew when you were there that 90% of these numbers

wouldn't you at least looking to the fact there might be fraught created? >> how might have if i knew those numbers at that point in time. >> mr. dochow. >> the answer is yes >> mr. carvin, you've been sitting here patiently to revolving. what do you think? >> i think we knew there was greater propensity for fraud and stake in come loans. from the examination stand point we would look at the fraga risk-management institution from the top down. >> and if you saw this going on you were aware of these numbers you would have at least asked them to make a referral to the justice department? >> any time we saw evidence of anything criminal we would require the institution to file suspicious activity report. >> and it's fair to say since -- by the where were you aware of these numbers, 90% come 73% and

50%? >> i don't recall those numbers. >> so no one is aware of the numbers, but what we are saying is if you did know the numbers that he would at least in the first instance begin to look -- mr. carter, you would have looked into it? the target rich environment isn't a bad phrase to use when you have 90%, is that fair to criticize? >> we elevated the review of rot risk management practices as the market began to heat up. >> back in the beginning this is what scared me we started using things like rot and examination and they all sound nice and cold blooded but we look at this now as you say there's somebody committing fraud and it isn't just some clerk at the bottom. they're doing something that his qualified as an announcement that it for betty considers poured into policy and they are doing it with 90% of their prime

loans and 53% somebody down there is doing something. so it doesn't matter whether you are making money or not to go back to the chairman's point. whether it is or isn't making money you still look at it and say what is going on here. and if you knew that i keep all three of you would agree you would look into that and i suggest if you look on it based on what others have said you would have found that this just wasn't happening. this wasn't a consultants -- wasn't a coincidence. that is the point i want to make. am i making a fair statement, mr. reich? >> in my opinion, our examiners on the ground were testing the qualities through all of their portfolios and they did that consistently year after year after year. >> right. >> and the institution continued

to be too rated which is -- >> but now you know and because you didn't have it and you didn't know, you now know that all of these stated loans were out there. don't you have to, now that you know, have to say that at least he would begin to look at the possibility? >> i would agree with that, senator senator kauffman but the american dream and getting people in their homes and finding financing vehicles that would enable them to do that. >> thank you. the point i want to make as we went through that. basil ii, all of these things were going on but that is what scares me mr. reich. okey you've got to understand the environment.

it's the environment. everybody was doing it. you have to understand that and my basic thinking is it that is where we are then senator levin and i are on a fool's errand to try to straighten this out. if every time something gets to be popular and every time people are making a lot of money, people like a lot of money my normal response would be i ought to look at that. that is it reassuring to me. >> i think lessons have been learned from what we have been through. >> thank you. mr. dochow? >> one observation i would offer is i've always believed that companies such as banks were ensured by the fdic when a taxpayer is ultimately on the hook for to have a special standard, special crete of some type in their performance in part of to be measured by that standard to the customer to the public interest would tell you

in my career i've been dismayed at how much from ceos and even small community banks using the only responsibility was to shareholders >> i'm sorry to have gone so far over, mr. chairman. estimate in another part of today's hearing their questioning the inspectors general from the treasury department and fdic. this 40 minute portion starts with oklahoma senator tom coburn >> thank you for your testimony. as i sit here and listen to both the opening statement of the chairman and to your statements i come to the conclusion that investors would have been better off had there been no ots because the investors couldn't get behind the scenes to see what was misled by the ots because they faced the regulators were not finding any

problems when in fact the record shows there were tons of problems. there was no action taken on it. so i guess my question was ots behavior we see in the record and as outlined by the chairman worse than not having or not doing anything. we get people continually investing in this business on the basis as a matter of fact they raised additional $7 billion before the collapse on the basis that ots said everything was fine when in fact ots knew everything was not fine and wasn't getting it changed. would you agree with that statement or not? >> yes, sir. i pulled back a point in my statement and said basically signing a satisfactory rating when conditions aren't is contrary to the purpose for which regulators use the ratings system and i think that's what you are saying. >> any comments on that?

>> i agree. >> mr. thorson you say that wamu field because it pursued a high risk business strategy that will send an underwriting too much. is it your belief that high risk strategy could have been okay with proper control in place? >> i almost any system if you put -- by definition proper rest kunkel would say yes we can control that so i guess to some degree yes you could say that. but the real life examples are once you begin to institute those kind of policies and become much more lax on underwriting which is your safeguard, you're final look before you do these packages it's pretty hard to understand what kind of system you put in place to control fat but in definition, yes in the real world probably not. >> and also the amount as relative to the risk that you are procuring and selling.

on page six of the testimony you said ots relied largely on wamu management to try progress and collecting examiner identified weaknesses and accepted assurances from wamu management and its board after victors the problems would be solved. do you mean to imply by this that ots had no system in place to find out if wamu was collecting the problems it said it was and was there any evidence that it wamu it was correcting the problems they went back in to see if in fact that happened? >> it's my understanding they relied on wamu's system for tracking. >> so there was no secondary follow-up by ots to change as requested by ots? they took the insurance wamu had completed and a trusted wamu? >> not to my knowledge but i will check to make sure because i want to give them credit if they did have a system and i'm not aware that i want to be sure you know that sallai will certainly double check and

provide but i'm not aware of one. >> to your knowledge was it common practice that ots issued recommendations to banks and simply took their word? >> yes. >> okay. was wamu an exception to that? in other words, did they do that with the rest of the thrift? >> i would prefer to make sure i am accurate on that i would like to get a follow-up. i'm sorry, go ahead. i believe as far as i can tell that wamu was unique in the fact that ots does have a tracking system that at least in place now and perhaps was put in place recently but wamu was the only bank i believe wamu said it was allowing to track its own recommendations. >> that is an interesting question. i would have no doubt ots has a system today especially in light of the hearings held that would

be important if you all could give us what your findings were in terms of when you saw that because if you're looking at wamu you have to be looking at ots as you did that. when in fact did the institute a system where did they have the system in place all along and ignore it with wamu because now we have become negligent if in fact we are using selectmen tools and enforcement for one thrift organization to another. is it true in your findings there was no internal tracking system at ots to look at all of their enforcement actions against wamu? >> no, in fact as i go back and look at the overall of understatement one thing i think i could make pretty clear is the examiners told us they had a process for reviewing the

corrective actions but they took the as you turned the reports the divide them up on fi ots examiners based on each area of examiners responsibility deanne each examiner was responsible for determining whether they would sign off. >> your note in your testimony the parallel between andy which failed in july of 2008 and washington mutual. how should the failure have been part of the fdic handling of washington mutual? i think the issues that we've raised with access to information had backup examination authority we had similar issues and that is why we brought that and made that

comparison. >> for both of you and i will finish of quick mr. chairman and the report today you lay out the problem of third-party brokers. wamu had only 14 employees overseeing 34,000 for the party mortgage brokers. what have been the right amount of supervising employees for that number of third-party brokers? >> the one thing to remember is each one of those brokers was providing more than one athlone so you can multiply that by another unknown factor depending what the average number of loans are that the brokers provided so now your way of a 44,000i can't even guess as to what the supervisory number would have to be but it probably would have required them moving to building roughly the size of the pentagon. we see over and over again the dedicated a great number of hours and personal to the supervision of wamu coming get problems never got addressed.

was a focus on the ground identifying the problems essentially were not getting solved and that's not to say that some or not but obviously the fundamental problems that led to their demise were not getting solved. any summary of where you look or where the breakdown was? was sequestered manager? was it guidelines, was the failure to follow guidelines that would account for the ineffectiveness of the ots? i really think that based on -- we talked about asset quality and underwriting and also management. all three of those it's not any one. it was something pervasive and it comes down to following the greater desire to do whatever you could to increase profits and when it gets down to it that is what this was all about we were going to increase the risk

in order to increase our profitability. >> but i'm talking about ots, i'm not talking about wamu. by your statement it would imply almost that ots is an enabler of this effort rather than an and the dollar making sure the american people's tax payer dollars and trusted institutions that are supposed to be regulated by an agency of the federal government can be trusted. >> i will end with this mr. sherman. in your assessment when you looked at the santa you look at cody yes and this is a great example of regulatory failure, a huge example of regulatory failure where was it? wasn't in their guidelines, is it in their management? is it in their upper management?

is it in the auditing of their own process? where is the failure that allows them to allow the largest customer which i reject if they do things to the detriment of the institutions there was supposed to be safeguarded >> the question comes down to the core what this is about because the truth is it starts at the bottom where there is interaction between the regulators and the banks and this gets back to whether you have an arm's length relationship whether the proper regulations policies for cody is or any regulator for that matter are in place but are not from the bottom-up for those policies in force and when people are becoming blacks does somebody in the supervisory will come down and say these are the policies what you are going to that is why we regulate and in this case clearly that wasn't done.

>> the data shows the people on the ground, the ones that are doing the auditing for following guidelines, were they not? >> yes, at least -- >> so that would exclude the people on the ground. so where is it? where was it in this instance? mabey you were hesitant to printing to but you all looked at this. you've done the study. where was the problem if it wasn't with the people on the ground reporting and identifying the problems where was the problem? i'm trying to get you all -- we will eventually say it but you all have looked at this. >> and i am certainly not hesitant to say it. we did point out the one case which was very much a concern to us where the regional director did override his own people and accepted what they saw as a much more lax board resolution written by the bank itself. that is a good example what you're talking about whether

that continues above them or below the am i can't tell you that that is one example and as i have pointed out we found the same example the same individual involved in indian act -- indy mac. >> the examiners in the field were identifying problems. this was a very large institution and the ultimate determination about what the rating was going to be would be made at least at the regional level of what the national level. >> if you don't mind i would like to add one apiece. i was being generic when my sister said the bottom. that is an overall on many regulatory group that wasn't aimed -- the record is pretty clear. i'm sure there is some of that that goes on even within the banking etc. but overall i fink the management of the regulatory

framework failed miserably in this case. >> and i think in the chairman's documents to point out a whole if finding after finding after finding those wouldn't have come forward if you didn't have good people on the ground. >> if i could add a comment if senator kauffman will forgive me on the question dr. colburn raised. the sculpture here was that these banks are constituents, they are not constituents, they are regulated. they are supposed to be regulated by the regulator. they are supposed to be the copper. when you deal with folks that are your constituents it sets exactly the wrong tone and when you repriced documents and pull the teeth out of the documents that sets a tone which is transmitted to people below in

the field. would you agree with that? >> absolutely. >> yes, sir. >> senator kauffman. >> we have trouble sometimes getting bipartisan agreement. i would say without a doubt we have incredible bipartisan agreement on this issue. i think senator coburn put his finger on something and i would like to go into it deeper because we had hearings the risk managers repeatedly said the examiners on the ground or doing a great job of pointing out with the problems were and reinforcing opinions they were presenting to wamu and they said he informally what people how europe the level at the ots board not fumbling with the examiners. i think when we started talking about what the problem is here that is a big problem.

so i think that senator coburn is right on point and i but like you to search your mind one more time. why did this happen? we've got the examiners on the ground saying the problems. one year after another and yet every time it goes up the chain there's a lot of allegations but i would like the two of you to say what do you think are the one where the two reasons why the risk managers yesterday said this week about the chain with more and more of a problem at ots repeatedly over all these years. >> senator kauffman, the problem and 05 and 06 into 07 the problem was the bank was profitable and there was a great reluctance to even though the problems were -- there were identified problems and underwriting the product distribution process, the

origination process all in my view extraordinarily risky not things perhaps that shouldn't be done but if they are durham they need to be done in some moderation certainly a controlled environment and i didn't see in this bank's case adequate control environment. sprick let me ask you this and that is truly scary. if you were running ots your largest customer was having reports like this from your examiners and they raise money. let's say we are a year from now. what would you do? what you say they are making difficult to become money. it's we to be difficult moving forward on this? >> my view was oftentimes examinations, if access quality is sufficient and in their ratings oftentimes if a bank is profitable and it's not yet showing delinquent, significant

delinquencies in its charge of the asset quality is sometimes hard to downgrade. but the management piece even despite the fact the bank is showing the profitability the management piece should be downgraded if management hasn't demonstrated the fact it is built the adequate systems and control process using the governance process to manage problems when they do occur so in this case i see no reason want the problems were identified and the concentrations were identified and the distribution process, once those were identified i find it difficult to understand why the management category set a minimum or not a word earlier on. >> the other part here, too, and you put it in an interesting way, but would you do -- one of the things the would touch on

what senator levin said, too collis don't forget about the earnings. it's part of what we measure as far as subsidies but also one fortunately it lands to the fact i'm looking at these guys as a constituent because i think in my testimony i mentioned they pay $30 million a year so we want to kind be careful about that. that should be made very clear from the top to bottom and it isn't a factor. it just isn't. second of all you want to look what is the guidance and regulation. maybe you need to tighten that up. guidance is optional. maybe we -- we don't necessarily have to do this if we don't want to take this action. regulation needs to be enforced and emphasized that enforcement of the regulations is also mandatory that's why it is called a regulation. and maybe that is something that as you look at the reform you look at as to what should be guidance and bush should be in actual regulatory form three

estimate let me ask you a question you don't even have to answer it. isn't it important to you pick to head up these agencies with their state of mind, isn't that an imported parts? someone that has the internal makings to say i know you're making money but what you are doing is really bad and you've got to stop doing it. how much role does that play and how we get around solving the problem in the future? mr. rymer? >> people in the leadership decisions to the to positions have to be able to make the tough cross. it may show profitability but to explain and enforce the management that risky profitability will have a cost. it either as a cost and control process as we have to an institution would have to invest in now or it's going to have a cost ultimately to the bank's

profitability and eventually to the insurance fund is that is the tough decision i think that has to be made or enforced constantly. >> i just think i've been around this place for a long time not as a senator but a staff person and we can only write the law so much but it's truly scary when you read this report and really in the report where it seems to be clear the problem here was we had good federal employees examiners saying there is a problem here and a management not doing it and i don't see it in the report and i think it is the key as we move forward. we've got good people out there doing the jobs and the career employees and i am a political by but if you put the wrong people in charge we can read the law any way we want to but if they are not going to go after the company because they are making money i want to shift to

something different but it's on the same point and that is i read your cause of wamu's thea lee and it's because mismanagement pursued a high-risk business strategy without adequately underwriting the loans or controlling the rest. i went to business school. that sounds great. i don't think that's went on here though. i really don't. and i think unfortunately you were not here for the hearing the other day but if you watched what went on a listen to the questioning and went through the exhibits he would say that is not quite a field. right mr. chairman? they didn't fail because the management pursued high risk business strategy with of providing the controlling risks. would both of you comment on dustin tralee -- is that what you believe happened here? >> it is a contributing factor. >> but the thing is that is the sentence. it doesn't say contributing factor. and i am not parsing words and then not even being critical interest saying it seems to me there were all kind of things

going on there were just i will get into characterizing it later but it wasn't just a discussion. this is a high-risk business strategy. they were doing bad things and the examiners were saying they were doing bad things. do you understand my frustration with reading the high risk business strategy? isn't that a cold-blooded way of letting everybody off the hook? this is a bad business decision. nothing went on to respond i appreciate your straightforward language and i can tell you from myself and down it is to not let anyone off the hook. >> i appreciate what you're saying and i guess i am saying i completely agree with you and your frustration because and this is what we deal with every day as we measure against the regulations and the rules and how did they do this and that but the bottom line is just what you're talking about and

especially the comments he made to mr. rymer which was to the have the guts to say market off, stop and that is what it comes down to when you were hiding regulators that is what you want and i think what obviously all this paper says is that didn't happen. >> mr. rymer? >> same thing. >> i'm not putting words in your mouth but in retrospect maybe there's another sentence that would have gone on there. >> management to police what they were doing. all kind of things that went on that were highly questionable and the people at the top of the office of thrift supervision really didn't do -- what you would have done is based a solicitation of a record like this this wasn't a six month record this was years of people knowing and for whatever reason they didn't move forward. is that a fair -- i'm looking

for an honest collection if i am saying something that is what -- >> it is and in fact i believe in the report mentions a very small amount because we don't get into that but we do talk about fraud indicators and those are being investigated and we leave it at that. >> i think that is part of what you're talking about. >> at just the kind of poster child for this was a stated in come loan. the first time i heard that i thought someone was kidding me. i go into a bank they say how much do you make and i say $500,000 a year and they say okay you get a 2 million-dollar mortgage. i would like to review what you said earlier because i want to put it in context but both of you said stated in come loans. what do the two of you think about stated in come wones? >> i don't think that it should be allowed.

i think that if a bank is going to advance on this secure or on secure they certainly need to verify who they are lending to and verify the repayment sources. >> of the record of this is the and nobody to prepay and that is a big part of the ability to repay is how much income as this individual have and if i just tell you, i was very surprised when i saw these. nobody has ever given me that opportunity so i just figured there is no way but evidently it has occurred a lot. hispanic it sounds a little tricky here. in your report what percentage do you think of all love wamu's, equity loans were stated in come on? take a wild guess. mr. rymer, to a wild guess. >> [inaudible] >> as i remember the number was somewhere in the 70% range.

i would be surprised if i told you that approximately 90% of all of wamu's home-equity loans were stated in come loans. now, folks, when you are raising a report -- and again, i spent a lot of time on this plus i've got the advantage of the hearings so i of a different view and you were doing your report and are doing a good job and i'm not -- if you have a company where 90% of the home-equity loans are stated loans, a practice used to finance just -- i said you almost did it much more articulately but just you shouldn't be doing that in a bank. that has to be -- you've got to think that clause one of the causes. let me ask you the option of arms, these are high risk loans option arms.

73%. past, they will try to take the ball out of his hands and turn him into a into a passer. >> it can't be done. >> boozer, and how do you see okur, and, boozer, not 100%. >> they need, we need bodies, and, everyone healthy, and right now, it is just too bad. playing well up to this point. okur, with the problem, he's going to play. boozer, 1-2 punch, with william. that hurts our pick-and-roll. and inside game. so, we'll have to, grind this game out, until they get

healthy, to win. this is the fun series though. beat us, 3-1, match-up between williams and, billups, is something to watch. but, anthony, is the person that, if they can stop him, then we have a good chance of beating this team in denver. >> looking forward to, northwest division rivals. we'll be looking looking forwar. 10:30 eastern. thank you. >> take care. >> there you see the entire schedule for the playoffs, on saturday. bulls-cavs.

pirates, extending their lead. after an 0-2 start, have gone, 5-3. pirates have the upper-hand here. scored on an error. and then, he added an r.b.i.-single. 2-0, looks like he's going 3-0. >> still early, though. >> braves are pounding the rockies. prado, ten games hit streak. bottom of the 7th, second-straight game, he has

gone deep. morgan, rbi-triple. third of the season. >> september 27, 2009, the day it finally ended. 19-straight losses, 645 days between wins. when asked what it meant, he said, i'm hoping this gives us a winning attitude, slow down. only won two games. two more than the previous season. shoot for the stars. may have one in stafford, but he needs a supporting cast, needs to be shaped. >> here's mike tirico. >> ♪ >> ♪ >> ♪ >> ♪ >> at least they won two games. they were better in 2009 than

2008. this is a long process. but, year one, did show some positive signs. how positive was it that you saw from stafford? >> very positive. i think, he has a high ceiling. but, there are some dangers. you can't let happen to stafford what happened to carr. when he was the face of the franchise, good start. everybody, the things that they talked about, all those things showed up, early. they exposed him to too much failure, took a beating. those demons, start getting loud. telling you what not to do. they have to protect stafford. because of that, they might not want to play so pedal-to-the-metal. >> jim schwartz is a smart guy.

>> the trade, and aggressive. they have added nate berg lesson, and, do it on defense, or the line? or add a running-back? all those things will help, which do they do? >> the defense, in 2008 was as bad as any defense we ever saw. now, they have the two tackles there at the top of the draft, and people trying to get a guy up front. you need to protect your quarterback. >> the left tackle, do you move around? trade down? yeah, you could trade-off a two. very difficult. nkamukong suh, and, added williams, and vanden bosch.

johnson, and, pettigrew. you need a running back. smith, nice young back. solid, off the injury list. you need a running-back. take the best player. one of those two, unless you look at russell, and move jeff back to guard, and develop a right tackle. >> would you get the tackle or is it a reach to take the tackle? >> no. probably a four. nkamukong suh are higher. safer to take the best player. nkamukong suh is the best player, and mccoy is the they can argue about o do you know number 1.

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visit med atlantic -- mid- atlantic. com. kevin will make his third start of the year, he goes against that starter left handed. thanks for joining us jim hunter, they are in first place and of course the birds are trying to snap a 7 game losing streak. looking for silver linings if you will, i think everything is lining up.

you have kevin on the mound, the law of averages have to come about. he has handled the baltimore orioles and sooner or later he will get it and i think it is tonight. >> i am hoping that is what will pan out, all they have to do is play a good defensive game. you can't forget back in '83, the baltimore orioles had two and they were stillable to recover from that and eventually they were in a world series so there is some hope. >> all they have to do is feel good about themselves and feel positive. another one on the roster, felix pie. it is in his left shoulder so he goes back to the disabled list. and lou montanez is back with

the team tonight. so for the second consecutive day, a player joins the baltimore orioles from aaa. when you look at how the baltimore orioles are hitting or how they are not hit being, -- hitting, they are 6th in the league but they are not getting the two out bases and they are zero 28 in those situations. they are just 2. 9 only 3 per game and 13th per plate appearance and when you are struggling you my might swing earlier than you would if things were going good. the owner of the three game series, they got some action. >> we just didn't play our game. we hit some balls hard.

you know we hit just right at them. that is our hook right now. >> i know you done like to comment -- don't like to comment, but with one run, is it a more difficult situation with pitching? >> i just want to get my team to get a chance to score first and then barrel out during the rest of the game. >> all right, here is the baltimore orioles lineup, adam jones is facing a left hander. wildcats batting matt wieters. ty wiggington batting 353 with a couple of rbi. he had his first rbi since

opening night. >> he was very aggressive right out of the shooter. then he gets a double, later on a single and got a second hit of the game. he flared it out to left centerfield and it was a good hit even though it was not extended. it went to right centerfield and they were thinking but he has to hustle for three. even though he got 3 hits, it could have been an inside park home run. as long as he is swinging the bat well, we need someone in the upper part of that order. without brian roberts and the fact that they have been nonproductive we have to have adam jones. >> here is the oakland a's lineup, rajai davis and he had

a big game, 2 for 5 and kevin kouzmanoff is doing clean up. eric chavez in left field. adam rosales in second base and cliff pennington. >> the guy gets a lot of fastballs. we have to find some way to get ahead of him early in the count. there are so many other things he can do excellent. a good jump in the outfield good contact hitter, uses the whole field, just another young star and you have to bear down against guys like this. they have that all around talent and they can hurt you if you done pay attention to them. >> they will try to get this road trip turned around, game 2 of the 10 game trip and right

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. go beyond the stadium, visit sarasota to plan your next vacation to beautiful sarasota. it is game two of the four game

series. kevin millwood is learnly not -- certainly not new to the oakland a's. >> one thing you can say is kevin millwood is old faithful. he is very durable, there is no question about that. kevin millwood went 10 innings back in 1999. he wants to go deep in the game and he takes pride with it. last year with the texas rangers, he was just four shy reaching the high in his career and one thing is for sure, opposing managers have not been able to realize the value of kevin millwood and that's what garrett jar bob told me

earlier. >> he gives his team a chance to win every night. we know he is an aggressive guy. our approach can't change day- to-day so we have to teach these guys one approach and have them battle it every night. >> eric chavez told me one thing about this lineup, you may see some longer at bats but they will be there in that battling is that one thing you noticed about this group? >> yes we are starting to see it come to fruition at this level and it is a good philosophy. today a lot of guys have very strict pitch counts and you get 5 pitches at bat and if you could average 4 or 4 and a half as a team you will see some of their 6 and 7 inning guys instead of 8 or 9. >> these guys want to get you

out as quick as possible. >> no the doubt. we've had games where we had kevin before and some games he has dominated us and that's what is great about baseball, we'll see how it goes. >> kevin millwood has been dominating to the oakland a's. if you look at his last five starts, all five have been quality starts. he has a 3-0 record. look at that e.r.a. 1.5. what an impressive strike out to walk ratio. kevin millwood, the old veteran, he is very used to going up against the oakland a's and playing here at the coliseum. he will be going deep in the game and he will try not to walk away with that heartbreaker. >> of course they will have a very tough outing against the you blew jays he -- blue jays he should have won and we

pitched well and we are beginning to see he is an anchor at the top part of this rotation. >> he uses the fastball up and down in the strike zone. he is very interesting to watch pitch, it doesn't matter who the pitcher is, he will get him to swing at high pitch even though it is high in the count, even though it is higher than he wanted, he gets the strike out, but watch this next pitch, see what it looks like when he keeps the ball down in the strike zone. vernon wells, it is not a slider, it is a curve and he goes right after you and he uses both sides of the plate with his fastball and breaking ball and you don't see many right handers to use the inside also. >> for athletics, his numbs

against the baltimore orioles are alarmingly good. when you look at his career, he is an average paper, 15-21 but he has dominated the baltimore orioles against dallas braden. he bats 173 and has only allowed one extra base hit. 3 are against tampa bay it and he loves -- tampa bay and he loves pitching. >> i see we will get a lot of off speed shot. he will show you a curve ball and a changeup early in the count and this is what it is with these guys. it takes a couple of years experience before you get a veteran hitter who adjusts to a breaking ball. maybe there is not enough experience at the major league level but this guy can look for the changeup, look for the

curve ball or fastball that he has and get a good at bat at it if you laid it up fast in the zone. >> this is a first place team this early in the year they are 5-0 and they have not yet lost a game. >> well when we come back we will look down to the farm. he is off to a good start, we will have more on masn. stay tuned. for a limited time lock in a super low price of $69.99 a month for the first 6 months. see the difference a 100% fiber optic network makes. get amazing hd... top rated internet...and phone. all for just $69.99 a month for the first six months. don't wait -- this offer won't last. call 1-888-get-fios now. this is beyond cable. this is fios. call the verizon center for customers with disabilities at 800-974-6006 tty/v.

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. well it is no secret at this baltimore orioles are developing an a been dance of pitching at the minor league oriole. he has made it to double a

buoy. we asked his expectations for this 2010 season. >> my expectations are to improve upon last year. i have some things i want to improve on. i was able to talk a lot about it this spring and my game plan was to get a lot of the hitters and go from there. i want to be able to throw some more strikes. >> he has steadily improved as he has moved through the system since being drafted by the baltimore orioles. he pitched a 9 and 6 record. zack's teammates have big

expectations for him this season. >> he has a devastating sinker and throws hard from the left side. when he throws strikes he does really well. he is trying limit his walks. his changeups have come a long way. he worked on a lot this spring. he work on changeups sliders is same old. i expect a lot out of zack this year. >> zack is a great pitcher, still fairly young but he has great stuff. he gets tons of ground balls. he will be in the big leagues soon. >> it was interesting to see that footage of zack britton. when we saw that footage, he was skinny and now he has filled out. he has allowed 3 earned runs

and in his last start, he is a sinker ball and last time he had 10 ground ball outs. he had a stellar e.r.a. and he is knocking on the door and making you notice. here is our web poll question of the day, answer the question of the day, which baltimore orioles pitching prospect will have the most -- you can is essential full major league career -- successful major league career? well it has not been a good start recordwise for the baltimore orioles. we will look at the last top five so far in the baltimore orioles season. >> as miguel tejada goes to get it, longoria gets it. >> can he get it over there?

he does and the whole thing just works. can he get the out? torres goes down the line. he shoots that to left field. a hop and away from home. here comes the pro. he is out. miguel tejada home run tie game. >> brian roberts, there goes nick markakis, he is the out. and that's going to win the inning. nick markakis in right field. >> top 5 plays in the first 10

games of the 2010 season. don't forget, we are unable to do television, it is a 1:04 start in the east. you can listen to jim and fred and then we are back with you on sunday for the finale before the baltimore orioles move up the coast as they have a 3 game series on monday, tuesday and wednesday before heading to boston and then a three game series against the red sox next weekend. when we come back baltimore orioles get ready to play oakland a's, you will hear from dave trembley, stay tuned. bo t geico can help people save in even more ways -

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game. >> we certainly have had our shear of miss fortune, but honestly, we have not helped ourselves either. we have not helped ourselves with the opportunities that we have had. so today is another day. a new game with another opportunity to get on track in a positive way. so that is the approach that we are all taking. >> i know the other day you addressed the team but have you talked with them recently? >> no. i have not. we had our advance meeting yesterday before we came out. i since the same thing in the clubhouse and i would say that everybody here -- you know i'll say it clearly, nobody is happy. but, it is done, it is overwith, we keep beating a dead horse here. we are 1 in 9. nobody is happy

with it, but it is done. it is done. there is not a darn thing i can do about it. people are as from the traded as can -- frustrated as can possibly be. we will win and when we start winning, i can't wait. i can't wait for us to start winning some games and so this whole experience can be a lot more pleasant than it is because right now it is not very pleasant. >> so manager dave trembley relying on the long ball, the baltimore orioles' percentage on scoring home runs and you can see it has dramatically end treed -- increased this year. 44.8% of their runs scored this year have come by the long ball and they are in this losing streak and they are barely scoring 3-runs and obviously you are not going to win if you

can't score but getting them on base not only does it give autunites to -- opportunities to score but it increases the pressure on the opposing pressure. >> yes that is what weakens his ability to throw the ball on the late. nick markakis, he is not doing what we are used to seeing him do, continuing miguel tejada has -- miguel tejada has had a little bit of bad luck, again we are not putting that consent amount of pressure to help the offense have a bad day. >> i had a win last night, it is neither of us, who is your player to watch? >> i have to stick with my boy nick markakis. i am looking for that 3-4 hit night for him to get him going

for the whole season. >> i am going with luke scott. we have each gone with left handed batters. we all know how streak can i he is. he prints is -- brings a 5 game hitting streak so i think tonight is the breakout night for luke scott and he will have a big night against dallas braden and that will be good for the baltimore orioles because they will score a lot of runs. >> hey, i am planning for percentages. standby, mike flanagan is next. they will battle it out and we will be back with the post extra game. and kevin is getting steak as he takes on the oakland a's. we'll see you in the post game

show, enjoy the game.

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. we will keep battling and keep trying to break through on this and sooner or later it will turn on our side. let's add on runs offensively. . it is the baltimore orioles on masn welcome to oakland game two of this more game set, a 7 game losing streak for the baltimore orioles after their second win on the season.

i am thorn thorn for the -- gary thorne for the baltimore orioles. it is not just about playing well but it is about getting no breaks. no excuses, the baltimore orioles have to make their own breaks and the hope it will be tonight. generally if you you will do that, the percentage of lead off men for the baltimore orioles is the highest. reverse that, take a look at how it works in the other direction. the baltimore orioles have the lowest number in the majors while the oakland a's are 6th highest. when they let runners on the numbs have been against them. >> it has been amazing. almost 70% of the time they are keeping the lead off man on base. again he is towing numbers -- astounding numbers, they are not able to move them on so you

had these things on. >> gary: they have not had a lot of luck there. >> jim: well when you think about the toronto blue jays, you realize the left handers have had a lot of intrigue on that. >> amber: last night at the coliseum, they received neither. there were mental and physical errors and i spoke with the coach, he assured me they expect to improve. >> the balls that fall in or where we have miscommunication, and you know guys running into each other or they don't know where to throw the ball, that is the things you want to work on. >> some of the things, i don't

have to worry about it because we addressed it last night. >> amber: you addressed it right there. >> well i am going to come up and let you know because i really would rather not wait until the next day because even though you don't see a lot of the same plays in the game, it could happen. i want these guys to be in the game mentally and i want to know what they are doing in the outfield. >> amber: it is all about being sharp for the baltimore orioles and it will be a whole lot better if they can stop the oakland a's from scoring early, gary? >> gary: they they have to score early and try to hold on. game 2 coming up and kevin millwood who had two very good starts can be on the right train arriving at this one.

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. >> gary: baltimore orioles baseball on masn brought to you by southwest airlines. grab your bag, it is on. another beautiful day here in oakland and oakland at the count he stadium is the site for game two of this one. it is high skies, lights are on and let's take a look at our train, game time temperature 59. visit train search, it is hard to stop a train. let's take a look at the starting lineup for the baltimore orioles adam jones nick markakis and miguel tejada, garrett atkins ty wiggington 3 for 8 centerfielder and an rbi. >> jim: let's look at dallas braden, no leads saved, 136 innings without a stolen base and number two would be a

campaign promise, when supported these 12-4 were not 17 and give me an o with a 1, 2, 3 e.r.a. and so farther 2-0 versus the baltimore orioles. >> gary: one of their left handed pitchers, this season with a 1-0 record. they like the work that he has done. they will try and get that early lead build on it and create some breaks for them essential. we talked about adam jones again for the second time and he will be batting in the lead off spot with a 3 for 5 with the lead off spot and maybe generate some offense. baltimore orioles ready to go, loses 7 in a row while the oakland a's have won for you

here at home. second baseman adam rosales has it. one pitch and -- 1 pitch and 1 out. >> jim: let's take a look at adam jones in last night's ballgame, two sides of the ball, he had an outstanding night. we were talking with john shelby today and they addressed it right away and has different philosophy on some things but they worked it out. >> gary: nick markakis is batting in the number 2 spot for the first time. nick markakis got his first rbi in the ballgame last year hitting 212 hard to imagine it would have continued to this point through 10 games. he has picked up 10 walks 7 strike outs. 3 doubles a triple an extra base hits and the left handed

delivery is going to miss. >> jim: adam jones had been 0-8 versus dallas braden. >> gary: that will go short on the one hopper versus cliff pennington. >> jim: let's look at the oakland a's defense, adam rosales left, cliff pennington on second, and jake will be behind the plate. >> gary: their defensive plays have made a difference including the one on miguel tejada. it could have been a lot different for him on the team. this play that came in the first inning of the ballgame was really maybe the play of the game. there were a couple of them that created turnaround moments for the oakland a's.

miguel tejada came up with two down a runner at second base in the first inning. >> jim: there was discouragement on the part of miguel tejada. >> gary: kevin kouzmanoff made an outstanding play at third base. the baltimore orioles could have had at least one run in that inning. there is kevin kouzmanoff the new third baseman who came from san diego. daric barton caught the bag. so 1, 2, 3 inning and he gets the ground balls. they are going to work. ♪ better times knocking... host: could switching to geico 15% or more on car insurance?

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. >> gary: let's take a look at the starting lineup. we will have rajai davis daric barton and ryan sweeney, adam rosales and cliff pennington. i think i said kevin kouzmanoff. ryan sweeney against kevin millwood, those are big numbers. >> jim: let's look at the scouting report. the inning came under after he willed and the -- unraveled and in oakland, kevin had 9 flyball outs with this expands in foul territory really should play

into his hands and 5 starts versus the oakland a's with a 185 e.r.a. >> gary: they find defensive outingin centerfield last night and rajai davis with rent it men dis-- tremendous speed, he takes it inside for a ball. rajai davis' plays have been at standing for this ball club. i was speaking with billy bean and he said rajai davis had been tagged as a career minor league player and not many people were looking at him and he just liked the way he went at the ballgame. he has turned into an outstanding player and a solid hitter who has power for rather small size, he comes through that zone antigen rates real good -- and generates real good bat speed. kevin millwood a 2 ball strike

out and he's gone good pitch on the outside corner. kevin millwood starts to open. >> jim: him and kevin millwood next to rajai davis, they are here to be a little -- they appear to be a little off the outside corner of matt wieters but gets the call >> gary: he has a 411 e.r.a. in that park, he is 6-3 in this lifetime against this ball club, the oakland a's and has won the last three decisions he has had against them. the baltimore orioles are hoping those are the numbers that will get things turned 0 around -- around in this 7 game losing streak. daric barton has won all 11 games so far for the oakland a's and has been a table

setter. daric barton lifts it and a diving catch made by cesar izturis. >> jim: did you see that on his face, nice play going to the hole. he has some early optimism, things are going their way for cesar izturis. >> gary: they have a chance with the 1l1stl0 inning. ryan sweeney has picked up at least one hit and he will take the pitch at the knees for a strike. ryan sweeney makes the start in right field, he had a 1-4 in the ballgame last night. ryan sweeney has had good numbers against kevin millwood, he is 5-12 with a home run lifetime off the baltimore orioles starter. >> jim: he is there because of the matchups with kevin

millwood. kurt suzuki and travis buck 1- 16 and kurt suzuki 2-18, bob geren is going by the match up sheet tonight. >> jim: bob geren said he will catch more games than anybody in the league so when i have a reason to take him out of there, i will do it. >> gary: 1-2 delivery on the way. that one beats it down the line miguel tejada going into this spacious foul territory, 1-2. >> jim: third baseman, if you you are a they are baseman playing in ballpark, you want to bring your track shoes. you almost have to triple the range and if anything goes up in the air in foul territory, i'm not sure how much room is on each side. >> gary: pitcher's delight.

1 ball 2 strikes for ryan sweeney and he gets the ball. kevin millwood 35 years old, two outstanding performances, first one against tampa bay, 2 hits and toronto took the loss, he gave up only one earned run 4 toe total. two strike outs and a 1, 2, 3 inning after one. and sting like a bee. ♪ float like a butterfly. sting like a bee. i'm gonna float like a butterfly and sting like a bee. ♪ sting like a... sting like a bee. [ woman ] half the calories, all the g. [ woman #2 ] i know that's right.

. >> gary: welcome back. garrett atkins the forward for the baltimore orioles. pretty early, pretty close. >> jim: he leaves the league somewhere around there. >> gary: you count whenever you get them. there is matt wieters. second time matt wieters has been in the clean up spot and he gets the opportunity to bat from the right side. it doesn't happen very often for him matt wieters batting 2 for 4. he has 3 rbis. the only home run with the extra base hit matt wieters has thus far on the season and an 0- 3 the owner in the ballgame

last night. daric barton from the third bayside of the rub -- base side of the rubber close to the left handers looking in which a over there. 1 ball 2 strike counts 26-year- old left hander bears in missed with it 2 balls and 2 strikes. >> jim: any time you are placed with the will beer, -- rubber, him being that far from base -- >> gary: a great play, and staying on the bag was daric barton, fine play at both ends. >> jim: outstanding play by the shore stop circles it with momentum going towards the dugout, a pretty good stretch at 1l1stl0 base. right before that bible between

short and third. >> gary: here is nolan reimold and he will be the designated striker. the pitch is in the outside corner, 1-1 in the at bat he had during the ballgame last night. dallas braden has not given up much on the season for the hitters, left handers and the right handers hitting just 171. he had tremendous numbers last year. right handers hit .290. he is tagged out by dallas braden and strike out victim, felix pie with the back muscle strain. >> jim: he was going back to

last night, he grimaced and later on pitched and had pressure on it and was trying to protect that shoulder so they decided to put him on the dl. there is the man with the last season with the orioles. scott with take it inside. scott has a 5 game hit streak and continued it with a 1-3 in the ballgame last night. and that's on the inside corner for a strike. left handers really do have to battle against dallas braden,

the left handers on the mound. 1, 2, pitch went to the outside corner and got it for luke scott. his strike outs retired the first 6 baltimore orioles and it is garden time at oakland. ] discover the unexpected beauty ] and man-made relaxation in northwest florida. fly southwest's new nonstops from bwi airport to panama city beach starting at $99 one-way. (ding) to help our community getke 10 miwhat it needs for the next,ns, oh, 10 years. fill it out and mail it back today. 2010 census. into every chili's kitchen?

it's all in the "pepperation." take our quesadilla explosion salad. i hand-toss it with fresh greens, corn relish, and tortilla strips. add grilled chicken, and finish it with crispy quesadilla wedges. the quesadilla explosion salad is part of our entree plus an appetizer pairings for $9.99. pick one of our 16 entrees, like baby-back ribs or honey chipotle chicken crispers. then choose an appetizer -- all for just $9.99. for a limited time, only at chili's. . >> amber: back at the coliseum much like the baltimore orioles, the oakland a's are focusing on pepping and i asked belly bean, he is have priced

they started before -- surprised they started before the baltimore orioles. >> any time you are starting over, he has done it before and has done it success fully, the upper trend line does not always go straight up so you you have to be prepared to go through difficult periods and we are still going through it now but this guy has a proven track record. >> amber: one endorsement to another gary. >> gary: and the hope is the baltimore orioles will get that ward trend started again. billy bean talking about how they are still going through it and he asked him what he meant and he said it is about offense. our starting pitcher will have to lead us if we are going to do anything because we don't have power. >> jim: power is down all around the games.

there are not that many guys available who can supply that need. >> gary: kevin kouzmanoff, that is his real name. he had an 0-3 last night a 1, 2 delivery and kevin millwood misses outside. that is a real good matchup. these two pitchers throw a lot of strikes and are efficient and don't walk many. kevin millwood has walk one this year and this is his third start. dallas braden has walked two. so he is not going to get many free passes. >> jim: no they work quickly and change speeds and both pitchers go by that formula and have had a lot of success. >> gary: kevin kouzmanoff takes it away and the count goes to 3 balls and 2 strikes. kevin kouzmanoff 1-8, off kevin millwood, the only one he has had a home run.

1, 2 delivery, write up the middle, a lead off single in the second ending. -- it inning. visit the baltimore orioles and find out about the player who wore those jerseys. it is brought to you by the jack can i robinson foundation. bidding closes at noon. baltimore orioles. com make your bid for a great cause and you get a great reward if you you are lucky enough. all those uniforms are going to charity. eric chavez is the designated hitter. he will take it for a streak. runner on first, shifted against him miguel tejada on the shortstop side and miguel tejada is over towards second. they have to hole the bag at first, a lot of room for eric chavez on a ground ball.$♪ he fouls that one and you see

already 3 hitters that could have been cue shots. >> jim: either they are out in front or a little bit behind. they are not able to center the ball. >> gary: win leaders, kevin millwood 155. that one lines to the gap right centerfield nobody is going to get that one up to the cut off for adam jones runners at first and third and eric chavez gets the single. and please note, adam jonessed should not overthrow the cut off and i say that seriously because he was talked to about that. >> jim: eric chavez guide it at towards right centerfield but kevin kouzmanoff did a shuffle

step and he realized it would fall for sure and goes to third easily. again it is something that john shelby and adam jones discussed last night, it was not the distance between the cutoff man that they were in a discussion about. >> gary: well put under discussion. here is jake fox, catching at first and third runners in scoring position for him and here are the the possessions where the oakland a's -- positions oakland a's have been outstanding. they are able generally to get that run across and more to. see what they do with it here, 1 ball 1 strike count and bob geren looking over at first base, eric chavez is not going to runny where. >> jim: the offensive numbs for the baltimore orioles and the

oakland a's are very similar, the oakland a's have been able to double the runs scored to the baltimore orioles and it's a situation where we have here. >> gary: he cuts that by fox and cuts that back. fox will be in and out of the lineup with eric chavez and we will get kurt suzuki behind home plate. he will run if they can get the double play on the ground ball. 2-2 runners on first and third way out in front of that one and just enough to foul that and the count stays at 2 balls and 2 strikes. >> jim: he will have to get his curve ball and a fastball gets a lot of flyballs and strike

outs. >> gary: there is the 2en-2 there. he played in 82 games and had 11 home runs and 44 rbis. 27 years sold out of arizona. >> jim: he has some pop. he not your typical catcher. he is more of a catch and throw guy and can do both. >> gary: 3-2 delivery on the way fastball will go high. the count was 22-3 -- 2-3 on fox. gabe gross is the on deck person and again it is fouled away here in the second ending 9 -- inning the oakland a's will throw some pitches. >> jim: the baltimore orioles pitchers know the way things

are going, it is a short reign, the baltimore orioles have scored only 6 runs in the last few games. >> gary: the pitch is staying at 3-2. >> jim: he tried to get within by him. i think it was in the 7th inning sunday, wasn't it? >> we have a companyel of at bats in that pitch count. there is a 3-2 delivery and again it is fouled away. >> jim: the hitter gets in the string mode, as opposed to taking aboarder line pitch, he expands the zone and has 10 pitches already. >> gary: runners again on first and third and fox is going to

win it. nick markakis takes the dash and it is a -- takes the catch and it's a 1-0 earned run. again the baltimore orioles find themselves behind early in the ballgame. jake fox with an rbi and here is gabe gross. jake fox that is his third rbi and that's pretty good considering it is the 5th game he has -- the only game he has appeared in. gabe gross one of the platoon players for tampa bay goes after the first pitch, 36 rbis with the rays. getting into left field, gabe gross would like to go to the

gap and he is a gap sitter with a ground ball. and the pitch is taken inside. for kevin this year so far, the right handers are 10-33, all home runs have been surrendered by right handed batters. 1-1 goes the other way and scott will hole the runner at second. -- hold the runner at second. >> gary: last year,ing they were 272. >> jim: the starting pip most clubs will -- starting pitch, most clubs will show you the difference between the starting pitcher and a relief pitcher. as a starting pitcher you have to get both sides righties and

left tess maybe your starting pitcher and you have to be good at getting left handers. but usual lip lefties get the lefties out and right tis get the righties out. there in lies the difference. >> gary: adam rosales with runners on second and they went away. adam rosales 2-4 in the ballgame playing at second base, and he has a hamstring problem. he is anxious to get back on the field but not yet. a 1 ball 2 strike count. there are the two base runners with only one in.

bob geren through the first 100 breaking ball, he just keeps it there in front of him. i was talking today with dave trembley about positive aspects and he said the improvement of matt wieters both behind the plate and on the plate has been enormous. and he has grown into a man coming back into the season and has a steady game face, you won know from one day to the other accept that he is working. -- except that he is working. he talked about throwing 5-8 and he did struggle last year trying to do that but dave trembley said he worked a lot in the off season on his the foot work and that has resulted in a questioninger release. 3-2 delivery and that one punched into the air and makes the catch. that looks like it almost handcuffed him 2 down.

>> jim: they may have lost it but that's the area in this ballpark and most ballparks the last second, he guesses where the ball is and maybe that is good for only 2. >> gary: so a break right there and the way things are going, it would have been dropped and rolled into the webbing. the other one of course he is a line -- he has a line drive catch. 2 down. cliff pennington... >> jim: the third. >> gary: the third. did a find job at shortstop, had a 1-4 and 2 rbis and cliff pennington, lead runner at second and one on 1l1stl0

base.$♪ the oakland a's are 253 with runners in scoring position getting 262. 0-2, kevin millwood wants the signs again. cliff pennington, he has had more opportunities with runners on than any other oakland a's. coming into the ballgame 4 for 13, won't you know that if you are number 9 guy? >> jim: those are pretty good numbers against kevin millwood 2-4 and hitting out of that 9 spot. >> gary: 1-2 delivery and that will do it so kevin millwood a run surrendered and the oakland a's have the early 1-0 lead. [ male announcer ] let's get down to the nuts and bolts.

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. >> gary: we want to welcome you those of you watching the nationals, brought to you you by masn hd and it is a 1-0 lead for the oakland a's sacrificed a fly ball. 49-2 and only three base hits to get a run. that is the score 1-0 and they lead in the four game set.

garrett atkins against left hander dallas braden and dallas braden has retired the first 6. garrett atkins had a 11-4 -- 1- 4 in the ballgame last night. he is doing some real damage to the baltimore orioles, they won 11 out of the first 12, played against the os. 2-1 delivery on the way, 66-28 against the baltimore orioles since 1999. that is a big time number. 2-2 delivery on the way -- delivery on the way. second baseman coming out. and he retires, time is running out, your chance to receive a trophy and you you can do that for as low at $146.

don't miss your chance to buy tickets and save. >> gary: ty wiggington 285 off the left handers. fouls that one outside of third. brian roberts is not doing anything baseballwise this coming weekend we understand so

his return will be predicated on when he can start working again. cliff pennington will get it on the charge, two down and home depot, doing more indeed. >> mike: again the baltimore orioles are looking for a good oh men and that play for nick markakis on right, it is an early indication that things are not going against them but may be in their favor. >> gary: that is the power of home depot, more doing and more saving. they had 1 for 4 in the opening last night and they will take the pitch inside. dallas braden is trying to go through the lineup without allowing a base runner.

22-0 -- 2-0 delivery on the way and that's the first strike. >> mike: talk about dallas braden being so far to the bayside and it is -- base side. >> gary: cliff pennington, a no no, he did a 360 to boot and still comes up with a defensive play. stabs it and gets it, 9 in a row retired by dallas braden. discover the unexpected beauty and man-made relaxation in northwest florida. fly southwest's new nonstops from bwi airport to panama city beach starting at $99 one-way. (ding)

>> gary: baltimore orioles baseball brought to you by southwest airlines, grab your bag, it's on and buy acura advance. from san francisco, oakland a's california, the oakland a's have the 1-0 lead and we are in the oakland alameda stadium. he was called out on strikes his first time up. days of days up. rajai davis is on and that can only mean trouble. >> mike: when the lead off man is on they usually score and they take it back to the second

time. the second time today they had the lead off man and this possesses a lot of speed and creates problems for kevin millwood. >> gary: rajai davis 5 for 5 and he has a lead and kevin millwood sees that and there throw over, same thing happened last night when he got on, he just extended the lead and the baltimore orioles were trying to keep it in a day and he pitches in for a strike daric barton fine play with torres his first time up. scott started the day leading the league with stolen bases. an 0-1 delivery, doesn't get the call, 1 ball, 1 strike. >> mike: daric barton -- >> gary: daric barton will take a lot of pitches, make you

work. he has picked up all those walks been on base in all of the ball games this season for oakland a's. again he is running the attention for kevin millwood. >> mike: and they will need a patient hitters when you have the speed burner running at first. they have to give them a chance because they can't handle the waiting. it becomes a problem and not all hitters can handle it. they must have been hitting for mark hendrickson, you can turn into a fan watching the game. >> gary: kevin millwood will miss with that and a 2 ball strike on daric barton. he has gone 4-12 during the streak. rajai davis leaning, long hold

there goes the runner diving back in, had a couple of steps and decided not go >> mike: it was is smart move. he took three or four steps and scam perfected back to -- and scurried back to first. >> gary: he has that stopwatch has got the delivery timed to the plate. 3-2 runner not going again, rajai davis decided to go back to the bag again and kevin millwood got 1 away in the third. >> mike: i'm not sure what the pitch is and it is either account error -- a account error a straight a cutter or a straight changeup in >> ryan sweeney -- >> gary: ryan sweeney strike on

victim, one down look to rajai davis, matt wieters goes to center field. it will be an error, a stolen base, 6 for davis and the error on matt wieters puts him to third. all these things are happening because of speed. >> mike: absolutely, no look back to home plate by rajai davis. you can see matt wieters wanted to be up for this challenge came up throwing. it would have been very quickly. >> gary: it forces the baltimore orioles to pull that infield in. early in the game, you cap afford to give runs so ryan sweeney drives it to short as torres goes to first. he take a look even with the infield drawn in. this was no play at the plate

and a 2-0 lead for oakland a's. >> mike: fastball and out over the plate. they have been taking the sure route, maybe a 5050 shot at getting davis out at the plate. >> gary: one of the things you hope for mike is they make a decision not to go on contact but with rajai davis' great speed bob geren had him going so they got the run. so again lead off man on in two of the three innings. lead off man got off with a single. this is exactly what billy bean was talking about, he said we have to score runs, not necessarily with hits. we have to play fundamentally

sound baseball. >> mike: that was with nick markakis, it is an unearned run and 2-0 oakland lead. gecko: yeah right, that makes sense. boss: trust is key when talking about geico. you gotta feel it. why don't you and i practice that with a little exercise where i fall backwards and you catch me. gecko: uh no sir, honestly... uh...i don't think...uh... boss: no, no. we can do this. gecko: oh dear. vo: geico. fifteen minutes could save you 15% or more on car insurance.

>> gary: it's not too late to mail in your census form today. i would say '0 9 was a pretty good tax year.

there is a deduction right there for that gentleman. >> mike: very good. >> gary: great to have you with us. yankees have to win today in 6 innings. they had a 5-1 lead in texas. there is adam jones, he will be at the top of the order, nick markakis and miguel tejada. baltimore orioles are trying string some hits together and get some runs, dallas braden, they take them down low for a ball, the baltimore orioles are hitting as a team, runs per game 2. 9 and number 14 in the league here is the 1-0 delivery. and they are going up against the ball club that is living and dying and read now living in starting pitching and this

oakland a's team is making the difference. >> mike: i think the only starting staff has not had a loss yet. >> gary: dallas braden with one of the wins. 2 ball 1 strike delivery to adam jones inside. there is that record we were talking about, they have won every season series since '98, 66-28. changeup, i was talking to bob geren before the game and they said the two improvements dallas braden sense last year, he has slowed up his changeup even more making it a better pitch and there you just saw it. swung on and fouled holding it at 3-2. >> mike: i see the confidence he has only 3-1 and 3-2. he

made his major league debute versus the baltimore orioles back in 0-7. he beat baltimore orioles and got sent back. that doesn't seem quite right. >> gary: no. 3-2 on the way he apparently never has for again the baltimore orioles and has 5 appearances, 4 as a starter. he is not going to win many games in the oppositions pitcher. adam jones with a 3 ball 2 strike count. dallas braden gets it in and gets the pop, another changeup, shortstop,ing cliff pennington and he has one down. the baltimore orioles are going

fast. we hope you will paint the park orange. 27 game is as low as $8. get yours and save orioles. com. nick markakis his first time up and he will take that one for a strike. 24-0 for the baltimore orioles. >> mike: nick markakis versus dallas braden. >> gary: thanks inside and against the left handers, 262, 3 off treat handers. 1-run delivery, 1 ball 2 strike count. >> gary: mike asked for this district. >> mike: i appreciate it.

337 -- >> gary: only when there are no clouds in the sky. that one is down the line that will be a base hit rolls into foul territory, nick markakis on his way to second base and the baltimore orioles have their first hit. 10 in a row have been retired by dallas braden and the baltimore orioles are on the board hitwise. >> mike: breaks and down and in, i think it is a change up down the first base line. maybe nick markakis is starting to heat up. >> gary: there is a chance with the baltimore orioles to get a run-in. there is miguel tejada, grounded in his first time, baltimore orioles knows the fans too well with arers in scoring possession.

that one popped in his foul terror are, what makes the play for the second out. >> mike: it was just a question of who is going to be hit high enough for daric barton to get over there. he still had about 50 feet of grass to go and i should think he should be used to hitting in this ballpark with the frustrations being in this foul territory in >> matt wieters will have to do it -- >> gary: matt wieters will have to do it with two down. made a fine play by cliff pennington in the second inning, two down. here of course the baltimore orioles number, 1-36. runners in scoring position with 2 away. th