The losses from the collapse of the subprime market are being felt in Australia, where more than 150 local councils, charities, churches, hospitals and nursing homes are sitting on a reported $2 billion loss after buying subprime investments which are now potentially worthless. According to Australia’s The Age, twenty-three local councils are currently preparing a class action lawsuit against Wall Street bank Lehman Brothers to recover their losses.
Among those that reportedly bought the products are four universities, dozens of super funds, ambulance services, the St Vincent de Paul Society, the Starlight Children’s Foundation, the Boystown charity for underprivileged children, and the Anglican, Baptist, Uniting and Catholic churches.
