❓ WA Parliamentary Question on Notice reveals the exposure of several Local Government Authorities (LGAs) to Collateralised Debt Obligations (CDOs) linked to the US subprime mortgage market through Grange Securities and Oakvale Capital Limited. It details the level of exposure and reporting obligations.
AnsweredQoN 5552Legislative Council
QuestionView source ↗
(1) How many Local Government Authorities (LGA), have been exposed?
(2) What is -
(a) the total level of exposure; and
(b) the level of exposure for each individual LGA?
(3) What reporting obligations are these LGA’s subject to?
(2) What is -
(a) the total level of exposure; and
(b) the level of exposure for each individual LGA?
(3) What reporting obligations are these LGA’s subject to?
AnswerView source ↗
Answered
14 November 2007
Responded by
Minister for Local Government
Response time
29 days
(1) Seventeen local governments are clients of Grange Securities. Of these, ten have Collateralised Debt Obligations (CDOs) in their investment portfolio, of which four have some exposure to the United States sub prime mortgage market.
Six other local governments are clients of Oakvale Capital Limited, of which, two have investments in CDOs with exposure to the United States sub prime mortgage market.
(2)(a) The total level of exposure as at 30 September 2007 is:
- with Grange Securities - $1.24m
- with Oakvale Capital Limited - $6m
(2)(b) Individual local governments that have invested with Grange Securities have an exposure of between 0.6% and 5.4% of their investment portfolio, while those that have invested with Oakvale Capital Limited have an exposure of between 2.4% and 3.8% of their investment portfolio.
(3) Local Governments are subject to monthly and annual financial reporting obligations covered by the:
-
Local Government Act 1995
- Local Government (Financial Management) Regulations 1996 and
- Australian Accounting Standards.
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Six other local governments are clients of Oakvale Capital Limited, of which, two have investments in CDOs with exposure to the United States sub prime mortgage market.
(2)(a) The total level of exposure as at 30 September 2007 is:
- with Grange Securities - $1.24m
- with Oakvale Capital Limited - $6m
(2)(b) Individual local governments that have invested with Grange Securities have an exposure of between 0.6% and 5.4% of their investment portfolio, while those that have invested with Oakvale Capital Limited have an exposure of between 2.4% and 3.8% of their investment portfolio.
(3) Local Governments are subject to monthly and annual financial reporting obligations covered by the:
-
Local Government Act 1995
- Local Government (Financial Management) Regulations 1996 and
- Australian Accounting Standards.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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