Professor Edward Kane:

The outsourcing is to the credit organisations, which disgraced themselves. The regulators said that if the credit organisations told them the loan was not risky they would not charge much of a capital charge against it.

Lots of evidence has emerged in the US about people being fired for being too good, credit A list, and people being promoted because the securitisers were really happy with the work they did. The incentives in those organisations really went bad. When one takes another person’s opinion one should be very careful about why one takes that opinion. The same applies to me. When the committee listens to what I say it has to decide for itself because it has the responsibility for deciding how applicable what I say is to the work it has to do.