Opes Prime Bankruptcy

[peter2]

ASIC is an independant Commonwealth Government body.
The decisions of ASIC are subject to review by the Federal Court, Administrative Appeals Tribunal and in relation to takeovers, the Takeovers Panel.
The Minister responsible for ASIC is the Federal Treasurer.
The Parliamentary Joint Committe on Corporations and Financial Services reviews the activities of ASIC through public and private hearings.

[from: ASIC: a guide to how we work. ]

It would seem that the best person to send your criticism of ASIC would be the Federal Treasurer.

 

[Buddy]

So, if it was ANZ, then I would suggest that their technical breach is very significant. And, they can't have it both ways. Claim the shares when it suits them but not declare them in the beginning! ANZ could be in serious trouble here. I go back to my point about the market being transparent. It looks to me like there might be a case for ASIC having a full on stoush with ANZ over this one.

Looks like I was correct:-
http://www.theaustralian.news.com.au/story/0,25197,23619813-643,00.html

More water to go under the bridge yet.

 

[CAFA1234]

Looks like I was correct:-
http://www.theaustralian.news.com.au/story/0,25197,,00.html
Quote:
Originally Posted by Buddy View Post
So, if it was ANZ, then I would suggest that their technical breach is very significant. And, they can't have it both ways. Claim the shares when it suits them but not declare them in the beginning! ANZ could be in serious trouble here. I go back to my point about the market being transparent. It looks to me like there might be a case for ASIC having a full on stoush with ANZ over this one.
More water to go under the bridge yet.

Buddy, I'm no expert, but aren't technical breaches of the takeover panels rules a relatively common event particularly involving large institutions where there can be a number of subsidiary cross holdings, and special situations in regard to beneficial ownership?

The Australian quotes an unknown source as sating that if a sophisticated investor had know of the holding then they may have concluded a different structure to what they thought they had, in relation to ownership. The term 'sophisticated investor' has actual quantifiable meaning in relation to investments and the disclosure required, based on an assumption that these high net worth experienced investors should be getting the correct legal and financial advise, or that they forgo the advise based on any investment being a small fraction of overall assets.

The lawyer who had a $100m account with Opes should have known better, and frankly I have no sympathy with a lawyer who can punt $100m on the stock market without reading and understanding the legal contract. I certainly would not want him representing me on any case!

My view is that Opes clients are clutching at straws on this one.
With the passage of time I stand to be corrected, but it makes great newspaper stories in the meantime.

Buddy, do you know of anyone personally, who was a client of Opes. This question has been asked before and no one has put their hand up. I suspect that Opes clients were not the sort to use ASF or any other kind of BB.

 

[farout]

This could be the end of the drama... small story just released. No doubt there will be bigger stories coming shortly. ANZ has it in the bag.

http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSSYU00430720080501

 

[farout]

The ruling is out!

Here is another story just released.

http://business.theage.com.au/opes-client-loses-court-bid/20080502-2a5g.html

 

[CAFA1234]

This could be the end of the drama... small story just released. No doubt there will be bigger stories coming shortly. ANZ has it in the bag.

http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSSYU00430720080501

Probably the end of this matter, but a few more lurking around..

Also looks as if ANZ will take a haircut on the deal as well as the punters. I recall reading in one of the papers about a $180 shortfall - I may have got the details wrong.

 

[cuttlefish]

Unlucky for Opes clients - does go to show that its important to read the fine print - but how any responsible regulator or bank or company directors could allow this bizarre situation to occur in the first place is beyond me. I would have thought there were a lot more angles and issues to come out of this but time will tell - I still don't understand why ANZ was waived of the requirement to lodge substantial shareholder notices for example. As John Terpu from CQT pointed out - had this been enforced then it would have been obvious to him that he didn't have ownership of his stock. So in effect the fact that ANZ didn't issue substantial holder notices would have reinforced the view that he was the owner of his stock. And as if anybody would risk a 5+% holding in a company for the sake of a small margin facility - or as was the case for a lot of people just the option to take out margin.


On a separate issue - does anyone understand the ANZ disclosure that gets released to the ASX each morning? The percentages of stock in each company held never seems to change from one day to the next (maybe I haven't looked through enough of them).

 

[farout]

Yeah, that's correct cuttlefish. ANZ haven't been selling any shares for a while. They are trying to let the markets recover before they start another wave of selling.

 

[CAFA1234]

Unlucky for Opes clients - does go to show that its important to read the fine print - b

People don't read the print, me included, and often take business on trust - let this be a lesson to all of us.

As an aside, but in a similar vein, there is an online superfund manager out there in Aus (one of the biggest) who insist that the cash amount be held in a Cash Trust Fund - it sort of looks like a regular bank account, but is subject to a 1.1% management fee with no doubt a slice going back to the super manager. I bet people think this is a 100% safe investment - Its not.

If one of these Cash Trusts breaks the buck (as several have done in the US) e.g. the capital value has gone down to under $1 there will be hell to play and then you watch the fireworks because this will be everyday Aussies getting stuffed.

 

[cuttlefish]

The other thing that there's no transparency about is how much stock the super companies are lending to unknown counterparties and what sort of risks they are taking on in doing this and how its being managed.

My view is that the whole stock pledging/lending issue needs to be brought out into the open with standardised agreements and mandated reporting requirements. The whole purpose of the 5% subst shareholder disclosure laws and the mandated change notices is thrown out of the window if stock of a greater amount than this can be lent out without disclosure.

 

[Garpal Gumnut]

Where is all this up to at present, not much in the newspapers about it now.

gg

 

[Julia]

GG, there are quite a few 'feel good' motherhood type statements about the revamping of ASIC, re-evaluations of their effectiveness etc. Ditto the ASX.
All supposed to make us feel warm, fuzzy and reassured.
Will probably come to nothing.

 

[TRUST_ME]

ANZ about to take it up the a**e.

Administrator Ferrier hodgson neg behind the scenes to come the a 'scheme of company arrangement' to get 70% of the OP clients money by threatening ANZ with legal actions for bullying poor old OP directors.

Meanwhile out west IMF and Lavan legal have commenced legal proceedings and request everything including the kitchen sink from Op and ANZ as part the discovery process.

Then back at the ranch, Cmth/ Slater & Gordon are rallying the troops and about to start their legal proceedings for 100+ clients.

Just need Mick Gatto to come flying in again, to do the interviews with ANZ staff.

 

[Aussiejeff]

ANZ about to take it up the a**e.

Administrator Ferrier hodgson neg behind the scenes to come the a 'scheme of company arrangement' to get 70% of the OP clients money by threatening ANZ with legal actions for bullying poor old OP directors.

Meanwhile out west IMF and Lavan legal have commenced legal proceedings and request everything including the kitchen sink from Op and ANZ as part the discovery process.

Then back at the ranch, Cmth/ Slater & Gordon are rallying the troops and about to start their legal proceedings for 100+ clients.

Just need Mick Gatto to come flying in again, to do the interviews with ANZ staff.

Yee-haaaaar! Ah' feels a-lynchin' comin' on with them thar posses circlin' clooose-er!

 

[Aussiejeff]

Yeee-haaar!

We-ell pardners - here we is 6 months later'n tha lynchin' party is a'greasin' up them nooses.....

Mebbe in 5 years if'n them cowdy loyers 'ave some lurk, them ANZ rustlers'l be hawgtied an' roast'n on a spit! :horse:

Woo-hoo!

[size=-2]Then again, pigs might fly.... [/size]

 

[aleckara]

Yeee-haaar!

We-ell pardners - here we is 6 months later'n tha lynchin' party is a'greasin' up them nooses.....

Mebbe in 5 years if'n them cowdy loyers 'ave some lurk, them ANZ rustlers'l be hawgtied an' roast'n on a spit! :horse:

Woo-hoo!

[size=-2]Then again, pigs might fly.... [/size]

The saddest thing about all of this is that the people who need the money (small investors who went into the contract) will take years to probably receive their money and by then for a lot of them it will be too late. Then again I wouldn't be surprised if the legal system absorbs most of that money.

 

[awg]

GG, there are quite a few 'feel good' motherhood type statements about the revamping of ASIC, re-evaluations of their effectiveness etc. Ditto the ASX.
All supposed to make us feel warm, fuzzy and reassured.
Will probably come to nothing.

what many people may not realize is these are (my understanding) basically Commonwealth Public Service staff. As such, you would find that they are not overly well renumerated compared to what good accountants would earn in the private sector.

Most of the staff would be "admin service officers", ie not fully qualified finance or legal pros.

they would have been wound back over the last few years due to good times.

they would be severely under-resourced and stressed out.

organisations like this are used as "training grounds" by the big companies, who cherry pick the best staff, by doubling their salary

 

[Garpal Gumnut]

It would appear the liquidators are calling in all the loans of the opes prime investors next week.

Its not going to be pretty.

Many folk will lose their all and the banks will crystallise their losses.

gg