Australia is the sub-prime dumping ground

Australia became a dumping ground for structured investment products from the US such as collateralised debt obligations. Churches, charities, super funds, local councils, companies and semi-government organisations are exposed to the US sub-prime crisis through investments made by US investment bank Lehman Brothers. Twenty councils have signed up for class action against Lehman's marketing of collateralised debt obligations. There are two billion dollars worth of exposure to Lehman funds under management in Australia, most of which is in collateralised debt obligations.

Source: The Age