mr. capuano was going.ou know, databanks come in, and if they did they were doing their job, and sweep all the cash that then left the customers holding the bag? >> let me review some of -- >> i said a lot there, i apologize. >> and i hope i don't replicate that. let me review some of the activities of the new york fed during the week of october 24, which was the week preceding the bankruptcy. and it started with a downgrade on monday the 24th, the next day there was a large loss declared by mf global. and already in the market there were rumors, and not only rumors, they were confirmed, about the large position taken in sovereign debt by mf global. and what those three things did, congressman, is they acted together to generate a loss of confidence that started a run on mf global. and the run that went on mf global really went on the funding side, and mf global funded it's up in the repo market. the same way that bear stearns funded itself in march 2008, and you'll recall that the run began on march 11, an

mr. capuano poses a really, really interesting question. let me just bring this a little bit differently. is it true that j.p. morgan was one of the main depository banks for customers, segregated bank accounts? >> i believe it was a depository, but any funds that they -- i met after sure it was a customer bank. and we've gotten from virtual all of the domestic depositories, the funds they were holding. is really the foreign funds that are the problem. >> okay. they were also the first of the main line of credit to mf global, over a billion dollar? >> there was a substantial line of credit. i think to the holding company, and i think is our behalf of a syndicate of banks, but j.p. morgan i believe was the lead of the syndicate. >> okay. and they would probably be unable to recover all of those loans if customers were made whole? >> i don't know whether that is true or not. it's possible. it's possible. >> probable? >> i would say possible. >> all right. we will settle on possible. jpmorgan and george soros purchase the mf funds in mid-novem

mr. capuano. >> thank you, mr. chairman. that mr. chairman, the obvious question is where is the money? their people a better position for more intelligence than to chase that down. but there's an awful lot of questions for me. first i'd like to talk about conflicting statements over the past couple of days with different hearings. different people said different things. i want to know what the truth is. i particularly interested to know what he does anyone else out there who have similar exposure to inhibit the same things are different things. does anyone know about it and does anybody care? i say that because the more i look into this, the more incoming to not a conclusion, but a suspicion they may have been little here that was technically illegal. i read through the testimony, the word misuse has been used a lot. but that is a legal statement, not a statement to a want to go and be. there's still a lot of questions of what was allowed, should have been allowed? is now closed up for future peo

mr. capuano, the raking member. >> mr. chairman i'm good to try to stick to the issues at hand. to ask what they are going to do from this point forward but they will may or may not get to this point but i don't think anyone here suggesting yet that it is. so in the meantime mr. kobak i would like to start with you. i totally 100% agree that your responsibilities for the customers but for the sake of discussion i also realized as a bankruptcy trustee were collecting information on all creditors. is that a fair assumption? >> our primary emphasis is both on the security and commodity side but we certainly -- >> for the sake of discussion all customers and i'm not suggesting they camp out for the sake of this discussion let's assume you get to 100% productive customers are paid was the largest creditor you to your knowledge at the moment? >> i believe the largest creditors probably jpmorgan. they were creditor of the holding company. >> do you have any idea and again -- >> i know they are a very large revolving loan. i know they were declaring bank. >> 500 million, a billion? >> h

mr. capuano from massachusetts for five minutes. >> thank you, mr. chairman. mr. donovan, do you have any idea, approximately how many loans fha currently has out there right now, about? >> the total value of our portfolio? >> the number of loans. >> over a trillion dollars. the exact number? >> the number of loans. >> right about seven million. >> about seven million? just curious of those 7 million people, these are all first-time homebuyers, is that correct? >> not all of them are first-time home buyers. >> most. >> refinancing available. that is much smaller share. >> 90% are first-time? >> our estimates of all the first-time home buyers who bought a home last year, about 56% used an fha mortgage. it is not only one our programs a huge share, it is a huge share of the overall -- >> the vast bulge of all fha home mortgages, first-time home buyers, people getting in the market, young people for obvious reasons. i'm just curious. i know you don't know the answer but at some point somebody to take a look see how many of them if it wasn't for fha could they afford