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 […]
16 April, 2013
By Julian Bajkowski Local governments, charities and and not for profit groups have finally won a phyrric victory over collapsed US investment bank Lehman Brothers, after the Federal Court ruled that the institution is ultimately liable for almost $250 million in losses suffered by investors. Handed down by Justice Steven Rares on Friday, the decision […]
25 September, 2012
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 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
Since the 2008 Cole Inquiry into faulty council investments a new financial conservatism has taken over local government. But the pressure is already on to find more high-returning investment opportunities, writes David Chaplin. Chris Russell has a clear recollection of the day Grange Securities tanked in South Australia. Facing down the crowd a few years […]
5 August, 2009
By Angela Dorizas Councils that invested with failed bank Lehman Brothers Australia will recoup between 2c and 13c in the dollar after creditors decided against winding up the company. Creditors have approved a deed put forward by Lehman Brothers Asia to ensure that Lehman Brothers’ executives receive the $11 million in pay owing to them, which […]
1 June, 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
By Staff Writer Failed investment bank Lehman Brothers Australia will appeal against the Federal Court’s decision to allow a former council client to access the company’s insurance policies. The matter will be heard before three judges in the Federal Court today. Last week the court ruled that Wingiecarribee Shire Council was entitled to access the insurance policies of […]
25 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 The administrators of Lehman Brothers Australia will be required to hand over details of the bank’s insurance policies, including personal indemnity insurance, to a former council client. Wingecarribee Shire Council in New South Wales has won Federal Court approval to uncover the insurance policies of Lehman’s in its bid to recoup funds lost through […]
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