Thank you, Mr. Chairman.
Good morning, Mr. Duguay. I'm pleased to see you today.
In Quebec, these infamous asset-backed commercial papers have had a tremendous impact on our large financial institutions and, to a large extent, have resulted in their losses. Earlier, my colleague referred to the Caisse de dépôt et placement. Quebeckers put their savings in this caisse in order to watch their money grow. Many other financial institutions have been affected as well, including the Mouvement Desjardins and the Banque Nationale. This is a very serious topic. We have yet to receive a full explanation regarding the shakeout of these assets. And yet, the rating agencies gave these securities a very high grade. That is one aspect.
My question will therefore be about the rating agencies. I thought that these agencies came under the jurisdiction of the government. Recently, I asked a Department of Finance deputy minister a question on this issue. I was told that these agencies are not subject to government regulation. You said that you rated these commercial papers very negatively. However, I didn't see this anywhere.
You are deeply concerned by the current financial crisis and therefore I would ask you whether there is any need to reform the rating agencies. To whom do they report? Right now, I do not know. It is not the government. I do not know whether the Bank of Canada plays a role in this matter. In addition, these agencies receive funding from the securities issuers. So there is a type of conflict of interest. The problem is very serious.
Are you going to be suggesting that we change the financial regulation of these agencies?