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Lehman Brothers Bankruptcy - Media releaseLast modified: September 17, 2008 - 3:58 PM
Port Stephen Council has today reassured ratepayers that its exposure as a result of Lehman Brothers bankruptcy in the United States is not expected to impact on its current financial position. Speaking today, Port Stephens Council General Manager, Peter Gesling said Council’s relationship with Lehman brothers, and the nature of its investments, would mitigate most adverse effects of the company’s collapse. “Port Stephens Council's relationship with Lehman Brothers is primarily a client/broker one, and as such council does not have any funds invested with them directly,” he said. “Their collapse, however, may impact negatively on Council's other security investments in the market.” “It is important to note while Council has a degree of exposure, no losses would be realised unless Council needed to sell these securities – which is not the case.” Of course it is impossible to predict what might happen to the market in the future, however the short term impact on Port Stephens Council is negligible.” “Port Stephens Council is monitoring events closely and is in regular contact with Lehman Brothers Australia.”
“The main immediate impact of Lehman Brothers' demise will be the requirement for Council to find an alternate provider of reporting and valuation services for those investments originally brokered through Lehman Brothers. This is not a major issue and it is anticipated there will be no shortage of financial institutions willing to provide this service.” Contact details |
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© 2008 Port Stephens Council |
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