Professor William Black:

I do not say it is because of this that it was the worst. It was the worst because it sank an entire nation. It produced a gratuitous fiscal crisis, as it turned out. I distinguish by what you know and when you know it when you make decisions. The inclusion of subordinated debt is simply indefensible and it tells you that you need to look at whoever would have included it. Every regulator in the world should have instinctively said "No" to that. It is contrary to everything we do to include the entire concept of subordinated debt. Remember, precisely because subordinated debt is owned exclusively by people who are considered to be highly sophisticated, they are the ones least likely to run due to liquidity - if it is a liquidity event only and not an asset event - and they cannot run because subordinated debt has a term. It is not like they can take out like a depositor, which is why the number is so low in terms of redemptions at those levels, and you do not have to redeem it after all if you will be paid in full. I add these clarifications to the Deputy's numbers.