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Council Recovers Funds as Part of Class Action

23 December 2015

Circular Head Mayor Daryl Quilliam said Council has received a confidential sum following a settlement with the Commonwealth Bank of Australia with respect to a class action commenced in the Federal Court of Australia.

The funds stem from the action in regards to Collateralised Debt Obligation (CDO) investments held by the Circular Head Council from 2006/07.

The Council placed $4.5 million in three AA rated investments with the Commonwealth Bank in 2006/07.

Overall, Council lost $3.1 million of the $4.5 million invested.

‘While it was regrettable that Council lost anything as a result of these investments, we have been seeking to recover the funds for some time.”

“Since this time we have made it clear that we would not consider investing in similar funds again.”