mr. dochow?>> you make an excellent point, senator. let me, get a little, if you will, flesh to hold on some of your comments, i think they're absolutely on point. we saw, when credit cards first came out as an industry that the modeling worked great for a few years, then failed miserably. we saw it with basel ii, the analysis that said these mortgages needed very little capital. there was very little risk. everybody was overcapitalized. what we find the financial system, to extent free market it develops products for the short term. >> yeah. >> that is very difficult. because you have that balancing act between having a free market, capitalistic system and a safe and sound system. >> right. >> and to have someone rule this product's good, this product's bad has some consequences. it is very difficult dilemma. >> frankly i'm concerned because i don't want to see overregulation. i know you don't either. but when you have situations like this, like you say, it was systemic problem. and it was syste

mr. dochow. >> thank you, mr. chairman.i will take a short bit of time here to read and oral statement if i may. by way of background i would type in office of thrift supervision in march 2009 after 36 plus years of career bank examiner and regular. i begin like her as an assistant national bank examiner with the office of the control of the currency in 1972. i examine national banks and those who position of bank examiner in washington, d.c.. during my 13 year old cc service. in 1985 i became senior regulate with the federal home loan bank in seattle and subsequent with the office of regulatory out opportunity i became an odious employee in 1989 and served in various regional examinations working out of the seattle, washington, office report to various regional line managers and also like to the regional director. i was brought to the reach of director west region in september 2007, and there after report directly to the ots career bank supervision executives in washington, d.c.. over the course of my 36 plus years of serv

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