That is your view and a generalised one with no proof. There is no surety it is a view held by others, including solicitors, parliamentarians and all the Host of Heaven it seems, involved in this saga.
Storm Financial Group
- Thread starter Garpal Gumnut
- Start date
That is your view and a generalised one with no proof. There is no surety it is a view held by others, including solicitors, parliamentarians and all the Host of Heaven it seems, involved in this saga.
Julia
In Memoriam
- Joined
- 10 May 2005
- Posts
- 16,986
- Reactions
- 1,973
Do some Stormers actually have documentation proving that The Bank inflated valuations?
True bunyip, but there a a few, Trevor S seems to have this opinion!! I was not trying to say that everyone here feels that way, just a few, bad wording on my behalf... My intention was onlt to reitterate where we feel our position in blame is!!
Dead right, CBA did... I wonder sometimes if CBA shot themsleves in the foot here, if storm was still around, I think that there would have been ways for both clients and CBA to recoup funds... But been the type they appear to be CBA came in swinging both arms while crying poor me!! not thinking of the consequences in whole!!
Perhaps??
Are you serious ????? Surely you must work for the banks or be very naive. The banks focus HAS to be their shareholders first and foremost whether we like it or not. Any attempts to resolve this issue must be seen in that light. That is, the minimisation of loss to the bank both in terms of its actual capital (payouts through litigation, protracted or otherwise), and its share price, dividends etc. Didn't I also hear that the CBA has a bonus clause based on public perception performance or the like. I agree it is certainly my view and a generalised one. Would be happen to be proven wrong and when companies directors start acting on behalf of anyone but their shareholders interests I will be the first the ask them to resign.......
I’ve heard it all now.... an altruistic bank
Fair enough.
whats all this about that the blokes from the enquiry cant work out who is to blame-what the hell is going on here ???? i thought it would be clear about who mucked up- if the smart people cant work it out how would the ordinary bloke have a chance???
blind freddie can see that the wheels fell off through gross mismanagement of peoples money and lives-hearing things like this make me even more determined to get to the bottom of all of this- people are really hurting through all of this-no more time to muck around-everyboddy has got to work together really hard to fast track a fair and positive result- come of guys get cracking- you pollies are working FOR us-we pay your wages-lets see some results- no dragging the chain-get blooddy moving-the is no time to muck about people are running out of time-not everybody is 20 yrs old--
blind freddie can see that the wheels fell off through gross mismanagement of peoples money and lives-hearing things like this make me even more determined to get to the bottom of all of this- people are really hurting through all of this-no more time to muck around-everyboddy has got to work together really hard to fast track a fair and positive result- come of guys get cracking- you pollies are working FOR us-we pay your wages-lets see some results- no dragging the chain-get blooddy moving-the is no time to muck about people are running out of time-not everybody is 20 yrs old--
A direct quote from the CBA's submission to the Senate Enquiry:
"What we’ve learned from Storm
We have discovered that, when it came to providing loans, mostly secured by property, we
failed at times to follow our own policies and lending practices. Additionally, a property
valuation assessment system known as VAS was misused on occasion by some staff with
the effect that loans against some properties were larger than they would otherwise have
been.
In our submission, we detail for Members how some Storm clients became too highly
leveraged as a result of Storm’s advice and, where this happened with our involvement, how
it could occur with little obvious visibility..."
http://www.aph.gov.au/Senate/committee/corporations_ctte/fps/submissions/sub357.pdf
For some reason I can't copy and paste from Levitt Robinson Solicitors (for Cassimatis) submission, but have provided the link and pertinent info can be found on pages 13,14,15
http://www.aph.gov.au/SENATE/committee/corporations_ctte/fps/submissions/sub369.pdf
Duncan Hughes in AFR - How CBA Stepped up to Storm Fiancial" 11/6/2009
"The VAS worked overtime in Townsville where its turbocharged valuations were estimated to have helped generate more than $100,000,000 of loan applications in the 2008 financial year - at a time when real propety prices were falling"
I know my property was revalued using VAS - without me requesting this be done - and I was approached by my adviser to borrow further from CBA based on their revaluation. Having spoken to a few agents since I'm sure now that the value was inflated - there is no way I could have sold for the price they revalued it to.
And don't bother telling me I should have done some research to double-check the value they came up with - that horse has already bolted!
- Joined
- 24 December 2008
- Posts
- 48
- Reactions
- 0
Garpal, You asked ages ago who wrote Submission 369. I think the answer is in this post.
Storm clients who are posting here, did you notice the ASIC Notice, copied below?
It appears beneath the message you are about to post.
ASIC Notice(1) You are solely responsible for the accuracy and authenticity of your posts, including any alterations made to posts. Any misleading or deceptive information may result in action being taken against you by ASIC or those acting on such information.
(2) If you own or have some other interest in a security, or you have any connection with a securities issuer that you might benefit from, you must disclose that fact.
(3) If you include hyper-links to other sites, you may be seen as endorsing the material on such sites. It may be advisable for you to warn people accessing other sites that you do not endorse or take responsibility for material in the hyper-linked sites.
(4) It is not permitted for any member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor.
It appears beneath the message you are about to post.
ASIC Notice(1) You are solely responsible for the accuracy and authenticity of your posts, including any alterations made to posts. Any misleading or deceptive information may result in action being taken against you by ASIC or those acting on such information.
(2) If you own or have some other interest in a security, or you have any connection with a securities issuer that you might benefit from, you must disclose that fact.
(3) If you include hyper-links to other sites, you may be seen as endorsing the material on such sites. It may be advisable for you to warn people accessing other sites that you do not endorse or take responsibility for material in the hyper-linked sites.
(4) It is not permitted for any member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor.
- Joined
- 10 March 2009
- Posts
- 466
- Reactions
- 485
The answer is simple - Manny's greed. Having read many of the posts and the submissions, it appears when storm started out LVRs were recommended to be around the 50% mark. It seems over the years, house valuations and LVRs all crept up to improve the commissions. The Banks were a part of the valuation rise but storm was the party managing the LVRs. Storm took over managing the margin calls in 2003. With no exit strategy and fingers crossed to get through the market drop, margin calls were required. Unfortunately the impact of this has seen many victims of poor financial management.
- Joined
- 8 February 2009
- Posts
- 27
- Reactions
- 0
That is a brief but very succinct answer which gets right to the point. They should put you on the inquiry Iggy and save everyone a lot of time and money.
Julia
In Memoriam
- Joined
- 10 May 2005
- Posts
- 16,986
- Reactions
- 1,973
Attachments
A lot of posts on this thread express concern that Manny and the Mrs will escape "Justice".
Well Manny's octopus spread right throughout North Queensland, including, Cairns, Babinda, Innisfail, Tully, Ingham, the Burdekin, Mackay etc.
Any one notice a common theme here?
OK, I am from the area and will reveal.
The majority of the population in these areas are of mediterranean descent.
These guys have very close family ties and alternative views as to how "Justice" is determined and administered.
Rumour has it that Manny made loans from Storm cash reserves to favoured clients in the lead up to collapse. Wonder who?
But from what I have heard no where near what is needed to in some instances to "save the farm".
If the actions against the Banks and others who may be able to pay do not make up the shortfall I think Manny might be wishing he was in the "embrace" of the guests of the Dept of Corrective Services rather than the alternative.
This is not a "conspiracy theory rant", after 50 years in the north Aussies are in the minority in the 4 branches of the family.
Landy.
Well Manny's octopus spread right throughout North Queensland, including, Cairns, Babinda, Innisfail, Tully, Ingham, the Burdekin, Mackay etc.
Any one notice a common theme here?
OK, I am from the area and will reveal.
The majority of the population in these areas are of mediterranean descent.
These guys have very close family ties and alternative views as to how "Justice" is determined and administered.
Rumour has it that Manny made loans from Storm cash reserves to favoured clients in the lead up to collapse. Wonder who?
But from what I have heard no where near what is needed to in some instances to "save the farm".
If the actions against the Banks and others who may be able to pay do not make up the shortfall I think Manny might be wishing he was in the "embrace" of the guests of the Dept of Corrective Services rather than the alternative.
This is not a "conspiracy theory rant", after 50 years in the north Aussies are in the minority in the 4 branches of the family.
Landy.
Here's the thing: I understand people blaming the banks for selling down customer positions but people have to empathise on one point - it was the bank's money that was being borrowed to fund this, and they had every right to be concerned about their position. Storm could continue to sit on their hands because it was the customer's portfolio and the bank's money eroding, not Storm's. In fact, due to the fee model, Storm would only stand to win from blind optimism and mismanagement as selling down to cash would be equally as disastrous as letting the banks take over and sell off the whole portfolio when the value dropped below allowed LVR.
So whilst the banks should never have let Storm manage margin calls, it's not that simple. Many businesses work on a wholesale basis and it's equivalent to banks allowing mortgage brokers to process documentation knowing full well that these brokers benefit from obtaining the largest possible loan.
How is this managed? Generally, through legislation and legal obligation. I deal with finance brokers often and they understand that they have a liability to act in a lawful manner. They also understand, I'm sure, that they are liable if a customer's details are misrepresented in an act of fraud - not the banks.
So for those who continue to claim that going after the banks is the best strategy, I beg to differ. I think you'll find that the banks are well protected in most cases and I also think you'll find that the wrangling which has occurred to shift the blame onto the banks has now saved the real culprits of this saga from full responsibility.
And the worst part - they'll be back, and you'll shoulder responsibility for that. Just some food for thought.
Excellent... we'll just bypass that pesky criminal justice system and the whole concept of guilt and innocence and leave it up to mob rule.
To be honest I prefer this system. People get off too lightly these days...
Ah yes.....the Italian origins of the far north.
Some Godfather-style justice, perhaps?....now that really would be 'the perfect Storm'!!
- Joined
- 21 December 2008
- Posts
- 4,532
- Reactions
- 1
"New cloud over Storm deal"
"Commonwealth Bank of Australia is facing a new round of legal action from former clients of collapsed planner Storm Financial that threatens to disrupt the resolution process now being finalised."
Read more by Duncan Hughes in The Australian Financial Review Wednesday, 09 September 2009.
"Commonwealth Bank of Australia is facing a new round of legal action from former clients of collapsed planner Storm Financial that threatens to disrupt the resolution process now being finalised."
Read more by Duncan Hughes in The Australian Financial Review Wednesday, 09 September 2009.
- Joined
- 21 December 2008
- Posts
- 4,532
- Reactions
- 1
CBA's Storm deal runs into trouble; report
"A group of disgruntled investors, represented by human rights lawyer and former judge Ron Merkel, have attacked the bank's deal with law firm Slater & Gordon saying it will not fully cover margin loans, the paper [AFR] said."
The group is led by solicitor Stewart Levitt.
More here in Business Speculator;
http://www.businessspectator.com.au/bs.nsf/Article/CBAs-Storm-deal-runs-into-trouble-report-pd20090909-VPQNC
"A group of disgruntled investors, represented by human rights lawyer and former judge Ron Merkel, have attacked the bank's deal with law firm Slater & Gordon saying it will not fully cover margin loans, the paper [AFR] said."
The group is led by solicitor Stewart Levitt.
More here in Business Speculator;
http://www.businessspectator.com.au/bs.nsf/Article/CBAs-Storm-deal-runs-into-trouble-report-pd20090909-VPQNC
Quincy
Jack of all trades master of 0
- Joined
- 28 June 2008
- Posts
- 173
- Reactions
- 0
