Mr. Frank Daly:

The board was determined that PIMCO had to go and could not be allowed to continue in the process. Once the red flag was raised about Mr. Cushnahan and the alleged fee, that was it. It was not unreasonable to give PIMCO a chance to reflect, as the Deputy puts it. We gave our executive a message to go back to PIMCO and say this was a very serious issue for us and this is what happened. It is covered in the transcripts of the records, in particular record No. 2. PIMCO did fall on its sword and it is my absolute belief that it did this because it had no alternative. PIMCO knew that we would not allow it to stay in the process.