dr. kroszner. >> i'll try to be brief. on the management issue, going back to the examples that i had given of institutions that were very focused on a narrow set of activities, mortgage lending, that didn't necessarily make them better managed or less risky. there's some very large, complex institutions that seem to have done well in the crisis internationally. both in the u.s. and outside of the u.s. more banks that have been more universal banks. you can find examples on either side, so i'm not saying that it's consistent that diverse banks are always better managed and focused banks are worse managed, that's certainly not the case. but i think it's very hard to generalize. i really think it depends upon the structure of the institution itself and the supervisory process over it. >> these banks aren't -- sorry to interrupt. but these banks, as i think dr. hoenig implied, if not said directly, in your mind are not by nature of their size too big to manage? >> not necessarily. we see that there were some smaller instituti

dr. kroszner. dr. hoenig, let me begin with you. i want to follow up on the concentration question that we discussed with chairman volcker. you and i have talked in the past about the importance of manufacturing. your region was obviously a major manufacturing centering and other things. the last 35 years, the share of gdp of manufacturing and financial services basically flipped. 30 years ago, manufacturing was 25% plus of gdp, financial services about 10. those numbers have more or less reversed since

dr. kroszner, you spoke about in your testimony, you made comments about cost/benefit analysis. i'm hearing out there in sort of the world of people dealing with regulators, that there really aren't appropriate cost/benefit analyses being done on these rules and there are many people that are predicting a plethora of lawsuits down the road as these rules actually come into play because the regulators are not adhering to congressional mandates of ensuring that there are cost/benefit analysis. i'm wondering if you are hearing the same thing? >> i think it's extremely important to focus on cost benefit analysis. it has bipartisan support. i was recently reviewing the executive orders from president reagan and president obama on this issue and it's really quite surprising how similar they look. i think there's agreement across the aisle that to make good policy, you have to think about the costs and the benefits. obviously there have been a number of lawsuits that some regulators have lost recently because they haven't properly done economical analysis. i think it's very important t