"Although the public had a right to expect that firms like Lehman were being regulated in a meaningful way, in reality, they were not," Valukas told lawmakers. Regulators, he said, missed opportunities to alter Lehman's conduct "before its situation had reached the point of no return." In his report last month, Valukas disclosed that Lehman put together complex transactions that allowed the firm to sell securities - mainly those made up of mortgages - at the end of a quarter. That wiped them off its balance sheet, avoiding the scrutiny of regulators and shareholders.