Crises of Capitalism

Interesting perspective to consider --

RSA Animate - Crises of Capitalism




In this RSA Animate, renowned academic David Harvey asks if it is time to look beyond capitalism towards a new social order that would allow us to live within a system that really could be responsible, just, and humane?

This is based on a lecture at the RSA (www.theRSA.org).


Councils win fight over lost millions
Monday, November 05, 2012

Thirteen NSW local councils that lost millions on failed finance products have won their case against an investment bank, a credit ratings agency and a local government financial services company.

The councils lost $16 million on complex investments called constant proportion debt obligation notes, marketed as Rembrandt notes, which were created by ABN Amro and given a AAA rating by Standard Poor's.

The councils lost 93 per cent of the capital they invested in the notes they bought from Local Government Financial Services (LGFS) in 2006.

Federal Court Justice Jayne Jagot said on Monday the councils were entitled to succeed in their claim for damages against LGFS, ABN Amro and Standard Poor's which included negligence and misleading or deceptive conduct.

She also said the councils were entitled to compensation from LGFS for breach of fiduciary duty.

Apart from that claim against LGFS, a subsidiary of the NSW Local Government Superannuation Scheme, Justice Jagot said damages should be split evenly between ABN Amro, Standard Poor's and LGFS.

LGFS also succeeded in its claim against ABN Amro and Standard Poor's for the Rembrandt notes it sold to its parent company after the credit rating agency downgraded them from AAA rating to BBB+.

http://bigpondnews.com/articles/National-Regional/2012/11/05/Councils_win_fight_over_lost_millions_813056.html