FROM THE OFFICE OF PUBLIC AFFAIRS

Chairman Sarbanes, Senator Gramm and Members of the Committee, I am very honored that President Bush has nominated me to serve as Director of the Office of Thrift Supervision and I am grateful to have the privilege of your consideration. I would like to introduce those members of my family who are present today.

The thrift industry is composed of approximately 1000 organizations, which operate in all states with approximately one trillion dollars in assets. Many of the organizations are small, some are owned by mutual thrift depositors, and several are very large with leadership roles in the financial services industry.

If confirmed, I would bring to the role of Director a unique range of experiences. I was the banking regulator for our most populous and diverse state during one of the most challenging periods in our economy's history. For twenty-five years, I served the banking industry as auditor and consultant. Most recently, I led the successful turnaround of a historic San Francisco bank. The diversity of my professional background has enabled me to understand and value the perspectives of both great and small financial institutions, the challenges implied in providing for their safe and sound operation, and the importance of protecting the consumer and taxpayer.

As California's banking superintendent during an economically volatile period, I led the California liquidation of the Bank of Credit and Commerce International and was able, after liquidating all debts, to contribute in excess of 100 million dollars to aid others in the worldwide liquidation.

In connection with the closure of another institution where investors in trust certificates were facing a total loss of investment, we were pleased to be able to resolve all matters and return in excess of 100% of investment to all parties, many of whom were retired and would have lost their entire life savings.

As a regional managing partner with the world wide accounting firm of KPMG, I directed all bank practice in the Western Region, including recruitment and training of financial institutions specialists.

In 1994, I became Chairman and CEO of the Bank of San Francisco, an institution facing closure by the FDIC. When we sold it in December of 2000, it was one of the most profitable in its size in the country. Leading the Bank of San Francisco through this challenge granted me the invaluable opportunity to experience first hand those factors that contribute to a financial institution's deterioration, as well as those which lead to its reclamation.

I am enthusiastic about the opportunity to serve our county during this demanding time. If confirmed, I will dedicate myself to the preservation of stability in our nation's diverse thrift organizations. I thank each of you for your time and your consideration.