Nicholas Rummell of Financial Week reports that there’s plenty of blame to go around in the current credit crisis, but owners of mortgage-backed securities looking for someone to pin the mess on maybe going after one target in particular: Wall Street firms that packaged the securities into collateralized debt obligations.

This week, charities and municipal councils in Australia sued a subsidiary of Lehman Brothers over risky CDOs that were sold to the councils in violation of investment guidelines.

Most CDO lawsuits so far have been brought against the sellers–investment banks such as Goldman Sachs and Bear Stearns–by shareholders who allege the investment vehicles’ risks were never properly disclosed. But the other litigation shoe to drop in the CDO implosion will involve legal claims against banks and hedge funds by institutional investors, including other hedge funds and pension funds, experts predict.

If you or someone you know lost money in a subprime mortgage or CDO investment, please contact the attorneys at The Frankowski Firm at 888-741-7503 to discuss your potential legal remedies.