Wingecarribee Shire Council today welcomed the news from the Supreme Court in the United Kingdom which voted unanimously in favour of the noteholders – of which Council is included – being repaid their investments from funds held as collateral for financial products known as collaterised debt obligations (CDO’s) structured by US investment bank Lehman Brothers.
Chair of Council’s Finance Committee, Councillor Juliet Arkwright said the decision was a significant step towards recouping Council’s investments in securities marketed by the collapsed investment bank.
“This decision significantly increases the likelihood of Council recovering its investment in the Dante series of CDO’s held by Council.
“And I believe this vindicates Council’s decision to join this legal action,” said Councillor Arkwright.
“Whilst we acknowledge there are still some issues and any further development may depend upon decisions handed down in the United States, we’re quietly confident that this announcement will increase the pressure on Lehman Brothers.
Further directions from the English High court are expected shortly.