The Age Newspaper Corrects Its Story
21 Aug 2008
The Age Newspaper reported on Saturday 16th August 2008 that mecu (and some 140 other entities) has an exposure to a CDO product through investment bank Lehman Brothers.
The Age published follow-up reports on Monday 18th and Thursday 21st August correcting their error.
Whilst mecu appreciates The Age correcting its errors, members should note that Lehman Brothers do not manage any funds on behalf of mecu.
Furthermore mecu can assure all members that it has absolutely no exposure to CDO products with Lehman Brothers or any other institution. mecu also has no exposure whatsoever to any sub prime related investments.
Grange Securities (now Lehman Brothers) acted as a broker for mecu to source investments from three Australian APRA-regulated Authorised Deposit-taking Institutions. These investments are not CDOs and are in no way related to the sub prime securities market in the United States.
mecu is the only credit union in Australia to have been issued with an investment grade credit rating from international rating agency Standard & Poors.
Questions on this matter can be referred to Phylip Doughty CEO on (03) 9854 4646 or Rowan Dowland General Manager Development on (03) 9854 4644 or 0418 508 718
