The Coffs Harbour City Council (CHCC) and other local councils are suing the ANZ Bank over investment advice it gave them before the global financial crisis (GFC).

In a statement of fact to the Federal Court yesterday, Thursday November 14, 2014 the council's lawyers argued the bank breached its financial duty of care and engaged in misleading and deceptive conduct.

CHCC director of Corporate Business Andrew Beswick said the legal action is to recover money the council lost in collateralised debt obligations or CDO's.

"The Global Financial Crisis was when it was realised these investments were not properly supported and that they were not prudent investments," he said.

"Even though they had been recommended by financial institutions and by governments to councils to invest in."

Mr Beswick said the CHCC has been involved in action over a number of years to try and recover money lost in the GFC.

"Attempts to recover monies that were lost as a result of collateralised debt obligations investments known as CDOs.

"I guess councils only became aware of how toxic they were and how unsupported they were post the Global Financial crisis.

"That had not been revealed in all its detail until the investments went bad."

The case was has been adjourned until December 11, 2014.