William Tanona (Goldman Sachs): Why your VaR did not increase in the quarter dramatically?

John Mack: VaR is a good representation of liquid trading risk but I can not answer that at the moment.

William Tanona (Goldman Sachs): There were some ratings actions out of S&P this morning on the financials guarantors. The most significant one is being ACA moving to C from A or CCC from an A. What your exposure is to some of these model lines and?

John Mack: Everybody has exposures to these model lines of the business, but we think that all model lines exposure is relatively modest. What we own in the Utah Bank, which is $1.54 billion. We have $1.34 billion of municipal model line bonds and we have approximately $130 million of others positions away from that. In terms of counterparty exposure, we have a net exposure of $761 million.

Steven Warden (JP Morgan): Do you get regulatory capital treatment for the mandatory convert?

John Mack: Yes. We do. Rating agency has different treatments for different pockets, but broadly this is a regulatory piece treated as tier-one and rating agencies give us to a large extent full credit for the whole thing, some savings depending on which rating agencies. This is definitely seen as a capital.

Douglas Sipkin (Wachovia): How do you think about the mortgage asset class going forward?

John Mack: We are not going to pullback on the mortgage business. There is a slowdown if you look at Saxon and they are servicing about 65% of what they did was servicing. We are committed to it though on the origination side that business is going to get smaller. We are still going to be active in it and we are looking at some of the things that we have done internationally and making a decision there or we are going to take a different profile and that is what we are discussing now.