It seems that in the run up to the crisis, the big banks were doing their best to play ostrich. In itspublic report, the FCIC wrote, “Only a small portion—as little as 2% to 3%—of the loans in any deal were sampled. When those loans turned up turnips, the banks didn’t do the logical thing, and have Clayton go investigate a bigger sample. Instead, they hid their heads in the sand—and didn’t bother to inform their investors of any of this. “Prospectuses for the ultimate investors in the mortgage-backed securities did not contain this information, or information on how few loans were reviewed, raising the question of whether the disclosures were materially misleading, in violation of the securities laws,” the FCIC wrote in its report.