S&P vows vigorous defence against councils’ ‘lawsuit is without merit’

By Julian Bajkowski Global financial ratings agency Standard & Poors has vowed to fight fresh legal action against it to recover millions of dollars lost by dozens of Australian councils after the local governments bought into junk, sub-prime instruments graded by the firm as AAA and AA quality investment products. The confirmation by S&P that […]

Lehman settlement for duped councils edges closer

By Julian Bajkowski Councils in New South Wales and Western Australia burned by the collapse of merchant bank Lehman Brothers could recoup around 45 cents in the dollar after liquidators attempted to broker a deal to litigants to settle litigation. While creditors and the Federal Court must still approve the deal, the compromise is a […]

Councils given green light to pursue lost investments

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 […]

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