mr. grippo and mr.ions that i'm going to ask me have already been asked. i had to miss some of this to do in interview but first of all mr. burner in your experience as the chief financial officer of the federal financing bank, which actually made the loan, provided the funds, have you been involved in the restructuring of loan guarantees before either in or out of government? >> only per of early. >> let me ask you then this media is a bit hypothetical but in cases where the terms of a loan guarantee were changed or restructured by of agencies have those agencies sought the approval of the department of justice to your knowledge? >> if they don't have their own authority than they would seek approval of the department of justice. if they have their own authority than they would not. >> then let me asked mr. grippo, because what you just said i think is the crux of this matter to reid is that the reason, mr. grippo, in your opinion, that the department of treasury said to the department of energy look,

mr. grippo, do you think it's a legal click >> i am not a lawyer. >> mr. grippo, the policy act in 2005 requires the secretary of energy to consult with the secretary of treasury regarding the terms of and conditions of the loan guarantee. is that correct? >> yes. >> but must d.o.e. do to console fight this department click >> the department of energy must come to the treasury at a minimum with the terms and conditions and a term sheet prior to issuing a conditional commitment to offer the guarantee. >> basically d.o.e. must seek approval to go through with the loan guarantee, is that fair to say? >> we are not approving or rejecting the terms and conditions. >> is merely pinny to inform you. that's all they have to do? >> yes, consult them. >> to treasury have the ability to approve or reject guarantee if they find there's problems? >> we do not have the authority. >> what if they guarantee do not protect the government's interest? what do you do then? >> we raise the questions. we provide suggested changes. >> there's nothing legally you do beyond that? c

mr. grippo and mr. burner, thank you for testifying from the department of treasury and thank you for your patience. some of these questions may have already been asked. i had to miss some of this to go to an interview. first of all, mr. berner, and your role as chief of -- as chief financial officer of this federal -- are you involved in restructuring a loan guarantees before it either in or out of government? >> only peripherally. >> let me ask you this -- maybe it is a bit hypothetical, but in cases where the terms of a loan guarantee or changed or restructured by other agencies, have those agencies saw the approval of the department justice to your knowledge? >> if they don't have their own authority, then they would seek approval of department of justice. if they have their own authority, they would not. >> let me ask mr. grippo because what you just said is the crux of the matter. is that the reason, mr. grippo in your opinion, that the department of treasury said to the department of energy -- lo

mr. grippo because what you just said is the crux of this matter. is that the reason, mr. grippo, that the department of treasury said to the department of energy, what, there's tale here. there's a red flag and it is our strong advice that you consult the department of justice before going ahead with this restructuring? >> we did not know what all of the department of energy is a 30 square. we did not even know details of the restructuring. we had heard that there would restructuring and it seemed like good advice in our consulted a girl to tell them to seek -- to go to the department of justice, which is customary. >> i commend you for that. your absolute correct in doing that. either one of you, why do you think the d.o.e. was so hesitant to seek doj approval to get a little bit more security, you know, why do you think they didn't do that? >> i don't have an answer for you. >> mr. burner can any opinion on that? >> i'm sure they have their reasons. i'm not really sure they had a legal theory on the spirit >> yeah, yeah, well it d.o.e., department of energy was so confid

mr. grippo let me start with you. i want to go back to the beginning there was an e-mail on tab one, march 19th, and the treasury review board at this point approved a condition commitment on march 19th, march 17th and u all expressed concerns on march 19th. that seems backwards to me. so you talk about your role consul to the fleet and you look at the town there was an e-mail expressing about 15 or 16 concerns the treasury department had. >> i'm looking at that, yes. >> because it meant by the federal review board happened today's earlier on march 17th. >> i am not aware when the condition -- >> if there was on march 17th would you find that odd that your comments would still work after the date that the conditional review had been made? >> i really can't say. >> now assuming the fact march 17th is the date the conditional review had been approved would you find it odd that you are still making comments after that? >> i don't know when the conditional commitment was offered. >> that's not what i asked. >> i understan