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O\'BRIEN, Kerry, (journalist, ABC)




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7.30 Report -

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# Our Don Bradman # Tonight on the '7.30 Report', the centenary of Sir Don Bradman's birth. The
anonymous new owner restoring the boyhood home to its original condition.

This house will be in the hands of someone that

Babcock and Brown teeters on the edge

Babcock and Brown teeters on the edge

Broadcast: 21/08/2008

Reporter: Greg Hoy

One of Australia's most prestigious banks has come close to collapse. The large Australian
investment conglomerate Babcock and Brown today announced its chairman and chief executive have
stepped down following a collapse in the share price amidst growing investor concerns over the
company's future.


KERRY O'BRIEN, PRESENTER: First to the near collapse of one Australia's most prestigious investment

The large Australian investment conglomerate Babcock & Brown today announced its chairman and chief
executive have stepped down following a collapse in the share price amidst growing investor
concerns over the company's future.

Babcock & Brown's shares have fallen almost 90 per cent this year as heavily leveraged assets shed
value in the credit crisis, including a further $450 million write-down on Monday.

But the announcement that the outgoing chairman and chief executive would remain on the board has
triggered outrage amongst some analysts and investors who believe that management has not
sufficiently been held to account for the company's deteriorating position.

Greg Hoy reports.

DEAN PAATSCH, RISKMETRICS GROUP: It's a financial conglomerate which is part funds manager and part
investment bank.

GREG HOY, REPORTER: Babcock & Brown's world was built on cheap debt. It's many varied investments
and managed investment funds have ranged in reach from resources to global infrastructure, wind and
other power generation, real estate, operations leasing, such as aircraft, corporate and structured

TIM MORRIS, ANALYST, WISE-OWL.COM: The problem over the last few months has been that asset prices
have been falling and the cost of debt and its availability has been increasing and tightening at
the same time.

GREG HOY: Led for two decades by founder and chairman Jim Babcock and the extravagantly remunerated
chief executive Phil Green, Babcock & Brown followed the high-fee footsteps of Macquarie Bank in
managing around a dozen satellite funds boasting a market capitalisation of more than $30-billion.

That was until the credit crisis hit and the music stopped as the cheap debt funding its rapid
expansion withered, leaving shareholders and analysts in shock.

DEAN PAATSCH: Babcock & Brown and other entities within its empire are overexposed to debt but I'd
contend that that has hastened the demise because the Babcock & Brown castle has been built on a
foundation of very poor governance.

IAN CURRY, AUSTRALIAN SHAREHOLDERS ASSOCIATION: We believe that there has been inadequate
disclosure, and it's still not clear to what extent the main company is affected by what is going
on in all the other funds that it has interest in or controls.

GREG HOY: But concerns that began to surface about Babcock's business model were for years allayed
by the smooth-talking chief executive, Phil Green who in 2006 alone was allocated a cash bonus of
$14 million.

PHIL GREEN, EX-CHIEF EXECUTIVE BABCOCK & BROWN (February 21): We don't trade in financial
securities particularly; we do take the odd strategic position. We don't underwrite floats. We
don't trade in bonds, we don't trade in commodities. We don't distribute financial instruments
other than direct investment in hard assets. That's what we do.

GREG HOY: But some smelt trouble. Many foundation investors from Melbourne's old money
establishment bailed out before the credit crisis hit as the share price slumped from almost $35 in
June last year to today's closing price of $2.22.

While Phil Green while remain on the board, as will Jim Babcock, television cameras were today
banned as a new chairwoman, the former deputy chair, and chief executive, the former chief
financial officer, were introduced to the media promising a new broom.

ELIZABETH NOSWORTHY, NEW CHAIRWOMAN, BABCOCK & BROWN: It's clear that in the current market
environment we have to make some tough decisions about refocusing this business.

MICHAEL LARKIN, NEW CEO, BABCOCK & BROWN: And we also accept the need change. Further, it's too
easy to simply reference market conditions alone as the cause for the current circumstances of
Babcock & Brown.

GREG HOY: So now the media, shareholders and analysts are asked to believe this represents a true
changing of the guard at Babcock & Brown.

And indeed, some are sympathetic and satisfied this is a sensible solution, while others who are
furious that Babcock's have retained their hefty fees in a period of valued destruction remain
sceptical and simply scathing.

DEAN PAATSCH: What you've got to understand is that Babcock & Brown generates a very large
percentage of its income from fees in separately managed satellite entities.

What has transpired in the outworking of the credit crisis is that investors have had a slow
dawning that these entities have been run primarily for the benefit of the sponsor, which is
Babcock & Brown, and not for those shareholders and those entities.

TIM MORRIS: Their business model was so reliant on debt. You could say that they are victims here
because they've built their house on you could say weak foundations.

It was enjoyable while the sun was shining, but now that the weather has turned, there's not much
they can do to... but watch the house wash into the sea, so to speak.

DEAN PAATSCH: The company is contending that Elizabeth Nosworthy is an independent chairman, our
company has never regarded her tenure as being independent.

But I think performance is the major issue here. Ms Nosworthy is the director of other companies on
the Australian Stock Exchange that have radically underperformed the broad market index.

IAN CURRY: We think there's very little renewal in this announcement. There's much of the same.

TIM MORRIS: I think it's important that if the company is going to be involved in areas which it
has traditionally been operated in, in any way that these people are around, because they have
driven it in the past, and to trade it out of trouble they're going to have to be involved.

GREG HOY: So we know who loses, but who wins in the end?

Well Babcock & Brown continues to call the shots. But it can't control its share price which fell a
further $1.23 today alone. Leaving just about everybody nervous about its outlook and some
suggesting others should be held accountable if, in the worst case scenario, the company were to
fail completely.

TIM MORRIS: It's a very real possibility at this stage and anyone buying into the stock at these
levels we regard as playing pure speculation.

DEAN PAATSCH: In a normal situation if someone had managed your assets so badly to lose 90 per cent
of their value you would expect that you'd be able to remove the manager.

Not so with Babcock & Brown power, because investors, in order to remove the manager, investors
would have to pay 25 years worth of management fees to Babcock & Brown. And that's a ridiculous

In my view, the ASX should share some of the blame for not informing investors adequately about the
full consequences of these management agreements. We'd like to see that changed.

KERRY O'BRIEN: Greg Hoy with that report.

Legal experiment, major issue in WA election

Legal experiment, major issue in WA election

Broadcast: 21/08/2008

Reporter: Hamish Fitzsimmons

Western Australia's truth in sentencing laws were introduced five years ago to clarify an informal
sentencing procedure where people would get about a third off their sentences for good behaviour in
gaol. The laws have led to accusations that the judiciary is soft on crime. Both parties are
promising to scrap the laws but until a new parliament is formed judges have to sentence people
knowing the cases will most likely be reviewed.


KERRY O'BRIEN, PRESENTER: A controversial legal experiment in Western Australia has become a major
election issue and created a legal nightmare for judges during the campaign.

WA's so-called truth in sentencing laws were introduced five years ago to clarify an informal
sentencing procedure where people would get about a third of their sentences off for good behaviour
in jail.

Its aim was to let the community know how much time a criminal would actually spend behind bars,
but it has led to accusations that the judiciary is soft on crime.

Both parties are promising to scrap the current laws, but until a new parliament is formed, judges
have to sentence people knowing their cases will probably have to be reviewed.

Hamish Fitzsimmons reports.

HAMISH FITZSIMMONS: Steve and Annette Dix live in south-west WA and rarely make the journey to
Perth. But they've come here to meet the State's most senior police and legal officers.

ANNETTE DIX, VICTIM'S MOTHER: It's to make sure that our children, especially our two youngest
children, who witnessed their brother's murder, know that we have done absolutely everything that
we possibly can to keep them safe, both now and in the future.

HAMISH FITZSIMMONS: Last year their 19-year-old son Lawrence was shot and killed on the doorstep of
their home over a $100 debt.

Steve and Annette Dix now want to know why the man who pleaded guilty to their son's manslaughter
will serve just two years in jail.

ANNETTE DIX: We can't say to our son, "It's OK now, you can come home in 12 months' time". We still
go and visit a graveyard, and all I do is hug a photograph.

HAMISH FITZSIMMONS: Their son's killer, Jack Benjamin Hall was originally sentenced to nine years
in jail, but had that reduced after a guilty plea and time already served.

His sentence was even further reduced under WA's controversial truth in sentencing laws, which
automatically cutting his jail time by a third.

ANNETTE DIX: Why should somebody who has done something like that, not just our case, but every
other case, who has taken the life of somebody receive a discount? For us as victims, that is more,
as hurtful as any legal process can be.

HAMISH FITZSIMMONS: Truth in sentencing was introduced in 2003 to clarify an informal procedure
that had been in place for years where prisoners would receive lengthy reductions on their jail
terms for good behaviour. It was intended to let the community know the actual time a person would
serve in jail.

CHRISTIAN PORTER, WA SHADOW ATTORNEY-GENERAL: The unfortunate effect of it is, is that it is an
untruthful system and it has brought the court system into disrepute because people who are not
legally trained see an offender get a 20 year sentence and then see that automatically reduced by
one third for reasons that are lost really in the history of time now.

JIM MCGINTY, WA ATTORNEY-GENERAL: We wanted to make that more transparent. We intended that the
discounting would be phased out over a relatively short period of time and consequently it's
referred to as the transitional provisions.

HYLTON QUAIL, LAW SOCIETY OF WA: It was an automatic discount, that's why it should be abolished.
And people recognise that, the Government recognised that back in 2003.

But getting rid of an automatic discount doesn't mean that you should therefore automatically jump
the actual time in custody by a half or so.

HAMISH FITZSIMMONS: And that's a concern for legal practitioners, as well as those who help former
inmates re-enter society.

PETER SIRR, OUTCARE: I think if you are going to say to someone, "You're doing 15 years in jail,
and that's what it's going to be and that's what it is, there's absolutely no incentive for
someone, there's nothing to look forward to.

HAMISH FITZSIMMONS: Outcare in East Perth has thousands of former prisoners on its books. Though
truth in sentencing can serve a useful purpose in rehabilitation, Outcare CEO Peter Sirr says it's

PETER SIRR: Id' think people don't really understand the process at all. When they're making
adjustments here and doing calculations on the side about making that's the sentence now but we're
doing this and doing that. I actually think clarity is really what the community wants.

HAMISH FITZSIMMONS: Law and order is never very far away from an election campaign in the west. And
both parties are promising to scrap truth in sentencing in favour of allowing judges more

JIM MCGINTY: It will give the court the capacity to impose the maximum sentence in the worst
possible case but in the general case to have reference to past sentencing practice and the
sentence that has been awarded for like cases.

HAMISH FITZSIMMONS: But the Government's promise to backdate new legislation has created a legal
black hole, according to the Law Society.

HYLTON QUAIL: The Government said they should win sentencing in relation to matters which come
before them now, sentence on the basis of what the law might be in the future, and if they don't
know what the law is in the future now, then in the future they'll be appealed in relation to any
sentences that they get wrong now.

HAMISH FITZSIMMONS: The Attorney General Jim McGinty didn't respond to the 7.30 Report's request
for an interview and the State Opposition says Mr McGinty must accept responsibility for the

CHRISTIAN PORTER: It should have been dealt with much, much earlier. Constantly the
Attorney-General of this State said that he was receiving advice. Now I don't know how long that
advice takes to be sought, given and accepted, but far too long.

HAMISH FITZSIMMONS: While politicians wrangle over who is tougher on crime, Annette and Steve Dix
will meet Western Australia's Chief Justice tomorrow, hoping any new laws will bring clarity where
there was confusion.

STEVE DIX, VICTIM'S FATHER: That's the reason why we're meeting with the commissioner of police,
and with the heads of the judicial system, so we can learn more about how to go about making that
change, and we'll obviously do it in a diplomatic and a professional sort of way.

KERRY O'BRIEN: That report from Hamish Fitzsimmons.

Olympic report card: John Coates speaks with Kerry O'Brien

Olympic report card: John Coates speaks with Kerry O'Brien

Broadcast: 21/08/2008

Reporter: Kerry O'Brien

As the Olympics draw to a close it is time to review Australia's performance. It is a remarkable
achievement for a nation of 20 million to finish in the top 10 but could the results have been even
better? Australia's Olympic boss John Coates speaks with Kerry O'Brien.


KERRY O'BRIEN, PRESENTER: As the Beijing Olympics move into their final phase it's clear America
can't hope to catch China's huge gold medal tally; and for Australia - despite some superb and
courageous performances - the post-mortems are already beginning.

Australia has slipped on the Olympic scoreboard compared to Sydney and Athens, and is likely to
drop from fourth to sixth place overall. One factor in that was the dramatic improvement by Great
Britain, which has been hurling money at its athletes to guarantee a peak performance when London
hosts the Games in 2012.

Australians have come to expect their sportspeople to perform well above their weight. The question
is, have we come to expect too much and is there more than national pride in considering a funding
boost to sport in this country?

I spoke earlier today with Australian Olympic Committee president and chef de mission, John Coates,
who of course, was in Beijing.

John Coates with just a couple of days to go, how do you summarise the Games from Australia's

JOHN COATES, AUSTRALIAN OLYMPIC COMMITTEE PRESIDENT: From our perspective we are very pleased. We
came with an expectation or objective of finishing in the top five. We knew that China would make
it difficult and be taking medals from other nations in the top bracket.

We also knew that Great Britain was on the way. Perhaps we didn't know that they were coming so
quickly. But I think we're going to finish probably sixth in the gold medal tally, and still have
high hopes that we'll finish in the top five overall, thereby fulfilling our objective.

KERRY O'BRIEN: The British team of course are special competitors for Australia. I know you
expected them to hit a high in London, but they seem to have peaked already, which of course leaves
one guessing as to what they're going to produce four years from now.

JOHN COATES: Well, it's not only funding. They clearly have been spending the money very, very
wisely, principally in the cycling program we have seen, and then their other strong sports of
rowing and sailing, swimming is improving.

It's not just a matter of money; it's a matter of having the right people, the right coaches, the
right sports science backup, and the right programs. So they have done it very well.

The big difference between frankly us and Britain, between the two games comes down to cycling, we
got 10 medals last time, five of which were gold, I think they have got 11 this time, six or seven
are gold.

KERRY O'BRIEN: When you look at what happened in the cycling the boost in funding might explain why
Britain has improved so dramatically, but it doesn't necessarily explain why the opposite has
happened to Australia, does it?

JOHN COATES: There's a little bit of a changing of the guard too many of the same faces were in our
team both on the road and on the track, and they deserve to be there, they were the best.

We have, certainly we are going to have to be looking to our junior cyclists who had a very, very
strong championships, world junior this year. I think it's just a matter of we haven't quite
brought them through at the right pace.

There hasn't, we haven't been introducing the younger riders early enough for these Games, and
similarly we don't, when it comes to diving, I am not at all critical, we just don't have the depth
of talent that the Chinese as the No.1 competing nation have.

Again we have been, a number of our successful divers from Athens came out of retirement, have done
well here, but haven't medalled. We just don't have the pool of talent to compete every Olympic

Some of it is going to go in cycles, that's one of the reasons why it's important that we don't
just specialise in some particular sports, that we embrace all of the Olympic sports.

In Sydney we medalled in 22 sports, in Athens 15. Here we'll do 14 or 15. Sometimes you'll be
successful, sometimes you won't.

KERRY O'BRIEN: When you talk about a lack of depth in Australia compared to countries the size of
China, nonetheless Australia puts high expectations on its athletes, doesn't it?

JOHN COATES: And that is why we are going to gather all of our sports again in a way that we
haven't done and perhaps that's the problem, we haven't done since 1993 when we got them together
and we devised what we called the gold medal plan for Sydney. We were then supported in
implementing that plan with significant Federal Government funding.

The sports need to sit down; they need to discuss what they are doing, with the institutes of
sport. Don Talbot for example used to have some input into the way Charlie Walsh thought in cycling
and vice versa. There is the opportunity to learn from each other and from the institutes, and
we're going to do that, and then we'll have a talk to the Government as to what that's going to
cost to implement.

KERRY O'BRIEN: Coming back to the individual performance of the athletes - it must be incredibly
tough for somebody who has worked so monumentally hard over years to strike a goal at some distant
point in the future and then just not quite get there.

JOHN COATES: It is and we are very conscious of the fact that many athletes particularly those who
are retiring and then have to deal with that at the same time, after a lifetime at this level, that
they do have, if not depression, significant downs some of them.

They tend to be the ones who haven't also undertaken education or been engaged in some work. As
difficult as that is to find the time, I think that is very important.

We have spent time with the Australian Institute of Sport and all of the state institutes of sport
which have counselling, have psychological services available for their athletes, they'll be again
trying to identify anyone with those problems, giving them counsel and they'll also be embracing
from their own states athletes from sports that may not be amongst their programs.

So we, it's something we are aware of. Something we're dependent on the institutes to help us with,
and something we'd like together to get right.

KERRY O'BRIEN: You have got one more important decision to make in the next 24 hour or so, and that
is who should carry the flag for Australia at the Closing Ceremony, what are the factors you are
weighing up?

JOHN COATES: Traditionally that's been, since I've been the chef de mission, that honour has gone
to our generally our most successful athlete. Provided that that person also is, you know, a good
role model and all of those sorts of factors.

But generally you could expect it will be one of the best performers of our team. I'll make that
decision in the next day or so.

KERRY O'BRIEN: John Coates thanks for talking to us.

JOHN COATES: Thanks very much for your and the ABC's support Kerry.

Cricket fans celebrate Bradman's anniversary

Cricket fans celebrate Bradman's anniversary

Broadcast: 21/08/2008

Reporter: Mike Sexton

Cricket fans across the globe are this month celebrating the 100th anniversary of the birth of Sir
Donald Bradman. The event is being marked by dinners, books and memorabilia sales. But the
anniversary is especially being noted in his childhood home of Bowral in New South Wales Southern


KERRY O'BRIEN, PRESENTER: I guess we also have to be careful we don't lose perspective entirely.
Sixth in the world for a nation of, or fifth, but sixth in the world eve, for a nation of 20
million people, doesn't sound all that bad.

While the sporting world has been captivated by the drama of the Games, cricket fans across the
globe are this month celebrating a significant anniversary.

Next week will mark the 100th anniversary of the birth of Sir Donald Bradman whose batting average
of 99.94 remains a remarkable benchmark in cricket.

The event is being used as a chance for dinners, speeches, books and, inevitably, memorabilia

Bradman was born in the New South Wales town of Cootamundra and spent a majority of his life in
Adelaide, but the anniversary is especially being noted in his childhood home of Bowral.

Mike Sexton reports.

MIKE COWARD, CRICKET WRITER: I think one just marvels that someone could go so close to attaining
perfection in a game that is so complex and demands so much of a man physically, mentally and

MIKE SEXTON, REPORTER: Sir Donald's 100th birthday is being celebrated by cricket fans across the
world. But nowhere is the legend more revered than in his childhood home of Bowral, in the NSW
Southern Highlands.

RODNEY CAVALIER, SCG TRUST CHAIRMAN: It's very important that country lads know that though they
are playing on ant hills, they're playing in remote paddocks, they can and they will play on the
Sydney Cricket Ground and at Lords.

MIKE SEXTON: Bradman's ashes are scattered at the picturesque ground that bears his name, and it's
where a museum is dedicated to both the greatest batsman and the sport he dominated.

DAVID WELLS, BRADMAN MUSEUM CURATOR: He was very adamant that it would always be about the wider

And that's what we are seeking to do.

MIKE SEXTON: In keeping with Sir Donald Bradman's wishes the centrepiece of the anniversary at the
museum isn't the man himself but the largest number of Australian test caps ever brought together.

The collection spans 108 years from Victor Trumper's skullcap from the 1899 ashes tour to Adam
Gilchrist's pair of sweat and champagne soaked baggy greens.

DAVID WELLS: Really symbolically show that continuity between the earlier players and the current

MIKE SEXTON: Despite its name the Bradman Museum is gently moving beyond the Don. Two new galleries
are planned, where exhibits will be based on international cricket and the modern game.

MIKE COWARD: It's been recognised at Bowral by the foundation and the trust, of a need to take the
Bradman name to a wider audience, and through an international hall of fame, a cricket hall of fame
at Bowral, an expansion of the museum to make it even more relevant to all age groups.

MIKE SEXTON: Housed in the current collection is a tiny photograph of the Don aged three standing
out the front of his family's house at 52 Shepherd Street. It was his home for 13 formative years.

RODNEY CAVALIER: You walk inside it and you can imagine George and Emily and the children in any of
the rooms.

MIKE SEXTON: After being a private residence since the Bradmans moved on in 1924 the home is now
the prized possession of an avid cricket collector, an Australian businessman who lives and works
in the United States and who wishes to remain anonymous.

RODNEY CAVALIER: This is a man who accumulates cricket memorabilia and photographs, some of which
were apparently lost. His contribution to the history of cricket have been very important, this
collector. And this house will now be back in the hands of someone who desperately loves cricket.

MIKE SEXTON: The new owner told the 7.30 Report he intends making the home available to other
cricket lovers but first has hired a heritage architect to oversee an expensive restoration of the
property to how it was when the young Bradman lived there.

IAN STAPLETON, HERITAGE ARCHITECT: It's in OK condition. It's been kept up through various
ownerships. The weatherboards in places are a bit rotten, it has got a bit of a damp problem under
the floor as the water flows across the site.

MIKE SEXTON: The most sacred cricket site in the home is the now enclosed verandah, where a
rainwater tank was used by Bradman to hone his reflexes by hitting a golf ball with a stump against
the corrugated iron.

MEG QUINLISK, HISTORIAN: This was originally an open veranda, it's since been enclosed. And our
research shows that the tank stand was approximately here where Donald Bradman would have played
his golf ball and stump game.

MIKE SEXTON: It's a very small little area isn't it?

MEG QUINLISK: It is, surprisingly small.

IAN STAPLETON: We can open up the verandah. Luckily we have the 1932 film footage and that provides
a very good basis for us to restore the appearance and finishes of the verandah.

MIKE SEXTON: While the restoration including returning the rainwater tank is long term project,
tomorrow a selection of the collector's archive of thousands of photographs is being exhibited at

What sets this collection apart are the images from the players themselves, that portray the spirit
of the time.

RODNEY CAVALIER: What I like is it's not yet another cover drive or a straight hit. He's got the
players in relaxation, the players at breakfast, the players preparing to play.

That's so important that we see the players as three-dimensional fully rounded human beings.

MIKE SEXTON: But amid the celebration of the Don's century, those who study cricket believe his
legacy is being reassessed against a backdrop of a game increasingly dominated by 20/20 and
multi-million-dollar player contracts.

MIKE COWARD: It's going to be very interesting to see whether the Bradman name is as relevant in 50
years' time, in 100 years' time.

I sense it will never be forgotten, it can't be because of his achievements were matchless.

But of course test match cricket in 50 or 100 years' time may not be the most significant form of
the game. We don't know what the culture of the game going to be.

MIKE SEXTON: But in Bowral the 100th birthday of their most famous citizen is a time for one more

DAVID WELLS: The centenary is probably the biggest thing that will happen for some time. But, he
will never ever lose his relevance to the game or to people who study the game.

KERRY O'BRIEN: Mike Sexton with that report.

Clarke and Dawe

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.

That's the program for tonight and the week, don't forget 'Stateline' tomorrow, we'll be back at
the same time Monday, for now, goodnight.