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Clarke and Dawe -

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Clarke and Dawe

Broadcast: 21/08/2008

Reporter: John Clarke and Bryan Dawe

Clarke and Dawe's spin on the credit crunch.


KERRY O'BRIEN, PRESENTER: Time now for John Clarke and Bryan Dawe with their take on the credit

BRYAN DAWE: Thanks for coming in. You are with one of the big rating agencies that give ratings
internationally to investments yes? Investors look at your ratings when making investment

JOHN CLARKE: Can we get my solicitor in here if I'm going to answer these questions.

BRYAN DAWE: Look this is not an investigation.

JOHN CLARKE: I think I'm entitled to a phone call as well.

BRYAN DAWE: We're just having a chat about what happened. Simple as that.

JOHN CLARKE: I knew this would happen, I told them this would happen.

BRYAN DAWE: You told who?

JOHN CLARKE: I told them at the very beginning. All the other guys.

BRYAN DAWE: Who? Who'd you tell? The other guys from the agency?

JOHN CLARKE: Yes, told them

BRYAN DAWE: Well who were they?

JOHN CLARKE: I'm not going to name them, I'll finger them when you take me downstairs. I'll pick
them in the line-up. I'll point to the one


BRYAN DAWE: We're not going to have a line-up. You're not in a line-up. we just want to find out
what happened, simple as that. Quite

simple as that.

JOHN CLARKE: I just drove the car. Charlie just rang me and said, "Get a car",

BRYAN DAWE: Hang on, hang on. Just tell me...

JOHN CLARKE: I didn't go into the building.

BRYAN DAWE: OK Just tell me how the ratings work. That's all I want to know.

JOHN CLARKE: Can you just ring that lawyer and tell him I'm with detective sergeant... what's your

BRYAN DAWE: I'm not a detective sergeant. There's been a lot of money gone missing we are just
trying to establish what happened to it.

JOHN CLARKE: I just drove the car I didn't go into the building.

BRYAN DAWE: What did you actually do?

JOHN CLARKE: We gave out ratings, that's what we did, we are a ratings agency.

BRYAN DAWE: Ratings on securities.

JOHN CLARKE: That's right.

BRYAN DAWE: And who paid you to provide a rating on this security.

JOHN CLARKE: The issuer of the securities.

BRYAN DAWE: And did the issuer of those securities influence the rating that you gave?

JOHN CLARKE: Other than paying us to do it?


JOHN CLARKE: No. What an outrageous suggestion. That would be improper.

BRYAN DAWE: Well let me put this to you. Did you rate these loans as being more reliable than the
Commonwealth Bank of Australia.

JOHN CLARKE: I just drove the car. All I did was drive the car.

BRYAN DAWE: Did your agency rate a bag of useless loans into the sub-prime mortgage market in
America as a better investment than the

Commonwealth Bank of Australia? It's a simple question.

JOHN CLARKE: Laryngitis.

BRYAN DAWE: You do not have laryngitis. It's a simple question. Answer it.

JOHN CLARKE: I've just picked it up. Laryngitis.

BRYAN DAWE: Are you expecting some legal problems from all this?

JOHN CLARKE: Can you speak up please? I was in the artillery for a while...

BRYAN DAWE: Are you expecting any legal action from this?

JOHN CLARKE: Can you... Look I don't want to say anything else until my lawyer arrives. You are
reading those figures the wrong way


BRYAN DAWE: What am I reading the wrong way?

JOHN CLARKE: Well you seem to be suggesting that our ratings agency would value a bag of old crap
loans from the bottom-end of the

American domestic housing market as a better investment than the Commonwealth Bank of Australia.
Why would we say that?

BRYAN DAWE: I'm reading directly from your rating here.

JOHN CLARKE: Well you're not reading it properly.

BRYAN DAWE: What do you mean?

JOHN CLARKE: It's like golf. You go for the low score wins, not the high score.


JOHN CLARKE: Why would anyone invest in a AAA rated loan?

BRYAN DAWE: No good.

JOHN CLARKE: Absolutely hopeless.

BRYAN DAWE: Well what about AA?

JOHN CLARKE: No. Get an A-rated, one if you... or one without a rating at all.

BRYAN DAWE: This is ridiculous; people have lost millions of dollars.

JOHN CLARKE: Can I see my solicitor please. People have lost millions?


JOHN CLARKE: You better get a barrister as well.

BRYAN DAWE: Thanks for your time.

JOHN CLARKE: And a judge.

BRYAN DAWE: Hang on. You can't just go out and buy a judge.

JOHN CLARKE: People brought us, we were a judge.