Grange Securities, the Australian arm of failed investment bank Lehman Brothers bought collateralised debt obligations (CDOs) for councils even though they advised the firm not to, the Federal Court has heard. Class action against the investment bank began on Wednesday. It included 72 councils, charities and schools, led by Wingecarribee Shire Council, the City of […]
3 March, 2011
By Angela Dorizas Melbourne based green technology group, Ceramic Fuel Cells, has begun a $25 million case against Oakvale Capital, a financial advisory firm used by a number of councils across Australia. The case against Oakvale Capital began in the Federal Court on July 22. IMF Australia is funding the case on behalf of Ceramic […]
26 July, 2010
By Rob O'Brien New guidelines on council investments will ensure that elected officials do not delegate financial decision making, according to the NSW Department of Premier and Cabinet. Deputy Director General (Local Government), for the Department of Premier and Cabinet, Ross Woodward, told delegates at the Government News Local Government Investment Conference in Sydney that new […]
18 March, 2010
Michael Cole. Image: Hugh O’Brien. By Angela Dorizas Councils that claimed to be in accordance with state legislation when investing in CDOs ignored their fiduciary responsibilities, the author of the Cole Report has said. In a keynote address to the Government News Local Government Investment Conference, the author of the 2008 inquiry into council investments, […]
10 March, 2010
The inaugural Local Government Investment Conference has teed up seven top speakers to distill the lessons of the global financial crisis (GFC) and map out the fiscal future for Australia’s councils. Held on March 9 in Sydney, the Conference will be headlined by Local Government Managers Australia (LGMA) chief executive John Ravlic. In a session […]
8 February, 2010
By Angela Dorizas A ruling by the Federal Court has cleared the way for councils to pursue legal action against collapsed US investment bank Lehman Brothers. The Federal Court found against the validity of a Deed of Company Arrangement (DOCA) put forward by the administrators PPB and Lehman Brothers Asia, which had prevented 38 councils […]
1 October, 2009
By Angela Dorizas This week marks the first anniversary of the collapse of US investment bank Lehman Brothers, which sent shockwaves around the world and brought the global financial system to its knees. Griffith Business School Professor of Finance, Michael Drew, said the collapse of Lehman Brothers demonstrated “multiple failures” in the current global financial […]
14 September, 2009
By Angela Dorizas The Federal Court has upheld an appeal by the administrators of Lehman Brothers Australia to block Wingecarribee Shire Council’s access to the company’s insurance documents. The council has been involved in a legal battle with the failed bank since 2007, in an attempt to recoup losses made through investing in collateralised debt […]
26 May, 2009
Wingecarribee Shire Council is seeking to recoup losses made from CDO investments. Image: iStock By Angela Dorizas Wingecarribee Shire Council in New South Wales has won the right to proceed with attempts to access the insurance policies of collapsed US investment bank Lehman Brothers. The council has been involved in a $2.5 million lawsuit against Lehman Brothers […]
11 May, 2009
By Angela Dorizas Councils that have lost funds through high-risk investments in structured instruments, including collaterised debt obligations (CDOs), may have a litigation case against financial advisers and rating agencies, says IMF. The litigation funder has agreed to back a $25 million claim by Melbourne-based clean energy company Ceramic Fuel Cells (CFCL) against “various parties” […]
9 April, 2009
By Angela Dorizas The New South Wales Department of Local Government said it would take a closer look at Maitland City Council’s investment portfolio and reporting in response to council’s differing accounts of the number of collateralised debt obligations (CDOs) it holds. Maitland Council issued a press release, dated 3 April 2008, claiming to have […]
5 November, 2008
By Angela Dorizas Maitland City Council has potentially misled constituents on its exposure to financial investments tied to the US sub-prime crisis. The NSW Department of Local Government (DLG) is now taking a closer look at the council's investment portfolio in response to differing accounts of the number of collaterlaised debt obligations (CDOs) the council held. […]
5 November, 2008
The NSW Government has issued a revised order to guide local council investment practices following a review that found some councils investments were linked to the sub-prime mortgage market. The Government commissioned the Cole Report to address concerns about council investments in financial products – known as collaterised debt obligations or CDOs – that were […]
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