matthew lee will be testifying later. he states that on may 16th he sent a letter to lehman brothers' management raising issues about the scope of his responsibility. his letter is referenced in your report which is made public recently. the letter in your report makes no reference to 105. in his testimony he says he prepared his second letter that was sent to a lehman brothers officer sent outside the scope of his responsibility. that second letter identified repo 105. that second letter was not in your report. are you aware of this second communication that mr. lee mentioned in his testimony? >> let me double check. there was an e-mail sent by his lawyer. there was then a discussion about that. we interviewed ernst and young who had in their notes the information imparted to them which included the information that there had been off-balance sheet transaction of $50 billion for the purpose of accomplishing the goal. >> there was this e-mail. is that referenced in your report? >> i will double check. >> at the time this

i saw matthew lee today, he reminded me that he and i had met at a social event, so i was not familiar with him. michael gelvan, longtime member of the firm. i will only tell you that the day after mr. gelvan left the firm, the senior officer that took his place, came to see me, told me that we were overexposed in leverage loans, i said how bad is it? he took me thank you it. -- through it. i said what's your recommendation. he said, let me bring it to executive committee, but i'd like to bring it down. i said, bring it to executive committee, start to bring it down today. and from that point, we took it down to something like from 45 billion thrars to $7 billion. >> and in any of his discussions of lowering your exposure or lowering your leverage, to include lowering leverage specifically for a quarterly report to investors, with the s.e.c., but specific targets of lowering your leverage for the quarterly reports for the investors -- >> i'm sorry. are you asking me, did i ever set a specific target? no. >> and you continue to say that you do not recall engaging in any decision making

i saw on matthew lee today. he reminded me that he and i had met at a social event. so, i was not familiar with him. michael, a longtime member of the firm -- i will only tell you that the day after he left the firm, the senior officer that took his place came to see me, told me we were overexpose, in leveraged loans. i asked how bad it was. he took me through it. i asked for his recommendation, and he told me to bring it to an executive committee, but would like to bring it down. i reaffirmed to him to do that today. from that point we did down something like from $45 billion down to $7 billion. >> in any of these discussions about lowering exposure, leverage, they include a lowering leverage specifically for quarterly reports to investors filed with the sec? specific targets for lowering your leverage for quarterly reports the? >> are you asking me if i said a specific target? no. >> that is right. you continue to say you do not recall engaging in any decision- making or even hearing about these repo 105's with respect to the quarterly reports and moving them on or