Australian (ASX) Stock Market Forum

Storm Financial Group

Jump to new
ngardiner said:
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...
Click to expand...

Our Courts and legal system may not be perfect but are far, far superior to the alternative.

I counsel against 'mobile vulgus'.
 
DocK said:
leveraged as a result of Storm’s advice and, where this happened with our involvement, how
it could occur with little obvious visibility..."

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
Click to expand...

Solly said:
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
Click to expand...

Garpal, Solly...anyone... is there a common denominator here
 
Very interesting to read the transcript of the hearing conducted in Cairns on September 1st featuring Mr Dalle Court.

Chrisgee, I can assure you that the truth is coming out at these hearings.
Things arent looking good for the Storm advisors thats for sure.
It appears that blaming the banks is not the best strategy for these so called advisors to use.
 
I see Cassimatis' lawyers are trying to blame the evil banks through the use of their valuation system (in the case of CBA) by saying bank valuations went up while property proces were falling in certain areas.
In my personal experience when I have bought property with a bank loan, valuations are done on today's cost of the building and land values as determined by the state government.

My house I currently live in has been valued by my bank just recently.
What it would cost to replace plus the land value is valued way above what anyone would pay for it at the moment, because the real estate market where I live at the moment is as dead as a dodo.

What the real estate industry cooks up as a valuation, or what people are prepared to pay in a certain area at any given time has nothing to do with a bank valuation.

Obfuscation at it's finest from those presumably engaged by the Cassimatis crew.
 
ngardiner said:
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.
Click to expand...
Top post. I agree entirely.

Quincy said:
Here is the article : - View attachment 33038
Click to expand...
Thanks for your trouble, Quincy.
 
Solly said:
"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.
Click to expand...

Solly said:
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
Click to expand...

Jifromoz said:
Garpal, Solly...anyone... is there a common denominator here
Click to expand...

Farencue said:
Very interesting to read the transcript of the hearing conducted in Cairns on September 1st featuring Mr Dalle Court.

Chrisgee, I can assure you that the truth is coming out at these hearings.
Things arent looking good for the Storm advisors thats for sure.
It appears that blaming the banks is not the best strategy for these so called advisors to use.
Click to expand...

Steve Borden said:
Am hearing that EC and his solicitor hosted a group of former clients last week.

Legal action pending or simply a catch up?
Click to expand...

This is the point at which the interests of the former Storm Principals, Advisers and Agents will become apparently different from the Storm Victims.

It will be interesting to see what happens over the next six months.

I'm unsure of what the rules of association of SICAG are, but I would imagine that in the new year the nominations for committee membership will be sought.

More ordinary Storm victims and less former advisers would be refreshing.

Let us hope the Storm Victims, the true victims, get their houses, health and future back on track.

As for the insiders, some inside time hopefully beckons.

gg
 
Garpal Gumnut said:
This is the point at which the interests of the former Storm Principals, Advisers and Agents will become apparently different from the Storm Victims.

It will be interesting to see what happens over the next six months.

I'm unsure of what the rules of association of SICAG are, but I would imagine that in the new year the nominations for committee membership will be sought.

More ordinary Storm victims and less former advisers would be refreshing.

Let us hope the Storm Victims, the true victims, get their houses, health and future back on track.

As for the insiders, some inside time hopefully beckons.

gg
Click to expand...


gg, I was with this fine Greek Goddess, Themis, outside the courts today.

I trust her judgement.
 

Attachments

  • solthemis.jpg
    solthemis.jpg
    28.3 KB · Views: 316
Solly said:
gg, I was with this fine Greek Goddess, Themis, outside the courts today.

I trust her judgement.
Click to expand...

Agree totally Solly.

This time the Parliament, Judiciary and Police will work as they should, despite all the shenanigans by devious lawyers (not Scattini) to let the guilty sneak free of compensation or time inside.

I doubt if the good med migrants of North Queensland will have to resort to digging up the poly pipes and unwrap the oiled rags as some have suggested in posts above.

Justice will out and the thieving bastards who stole the futures of honest hardworking Australians and who now masquerade as their saviours will pay and serve their time.

gg
 
"Storm Financial victims hit again by bank cash grab"

"DEVASTATED Storm Financial victims have been stung all over again by the bank at the heart of the disaster.

Up to 10,000 investors who lost millions in the collapse of the Townsville-based advisory firm have since been slugged "adviser service fees" by a company acting on behalf of the Commonwealth Bank."

More by AnthonyMarx in The Courier Mail here;

http://www.news.com.au/couriermail/story/0,23739,26051539-952,00.html
 
"Storm founder and investors hold secret meeting"

"Emmanuel Cassimatis, founder and ex-chief executive of Storm Financial, is believed to be seeking support from former investors in his collapsed company to bring a legal action against the Commonwealth Bank of Australia."

Read more by Duncan Hughes in The Australian Financial Review of Sept 10, 2009.
 
DocK said:
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!
Click to expand...


DocK there is a supp to sub 369 as well by Stewart Levitt, here it is;

http://www.aph.gov.au/senate/committee/corporations_ctte/fps/submissions/supsub369a.pdf
 

Similar threads

TiminOz
The dynamics of money and TIME: crimping cashflow for a period
Replies
3
Views
862
TiminOz
TiminOz
BossMan.
The planning of a portfolio
2
Replies
29
Views
1K
Value Collector
Value Collector
basilio
Ozempic: Magic Pill or Devils Bargain?
Replies
10
Views
2K
sptrawler
sptrawler
ducati916
February 2025
2 3 4
Replies
60
Views
5K
ducati916
ducati916
Garpal Gumnut
Mayfair 101/Mayfair Platinum
2
Replies
35
Views
5K
Dona Ferentes
Dona Ferentes
Top