Mr. Gerry Fitzpatrick:

The process I got to was to say, if in the absence of valuations, how has the bank valued the collateral. It was significant, you look to various... there were valuations, the question was was the valuations they were doing reflective of the internal data and external data in relation to valuations ... property valuations. So we had a series of internal valuation reports. They had panels of valuers where they were consulting with valuers in relation to collateral movements by a particular type of geography. Then we were looking to external sources of data, IPD indexes, valuers indexes, briefing by valuers and we inquired of them in 2008 to undertake a process which I would call a top down process to say, "Where are all your stress loans? What year were they written in? What if the situation is that there is a loan... a value that falls by X amount? And is that consistent with the impairment number that came up from the bottom up analysis?"

Unfortunately that situation, looking back in time, the stresses they were assuming in terms of the fall in collateral values were reflective of the information generally understood in the market at that time as the incurred loss models we described which is, not the future loss the current loss. And obviously those assumptions in hindsight were flawed, but at the time I satisfied myself that they went through an appropriate valuation process and therefore that is how I validated their judgment.