Storm Financial Group

[Solly]

"CBA claims scheme for Storm clients established"

"The Commonwealth Bank says the establishment of the Storm Financial Resolution Scheme will help to ease the hardship of customers caught up in the company's collapse."

More from the ABC here;

http://www.abc.net.au/news/stories/2009/07/30/2640756.htm

 

[Ironhalo]

http://www.smartcompany.com.au/Prem...ons-from-the-collapse-of-Storm-Financial.html

Some salient advice for the SICAG stooges that think Manny/Storm could do no wrong.

And:

http://www.smartcompany.com.au/fina...ail-to-back-up-claims-of-bank-conspiracy.html

Check this section out:
'Worrells found that by 19 November last year, the company's joint chief financial officer knew a $11.2 million tax bill was due on 1 December, but there were no funds to pay the bill.

On 15 December, Emmanuel and Julie Cassimatis paid a dividend to themselves of $2 million. On that day the company did not have the statutory minimum number of directors.

On 23 December, the $2 million payment was reaffirmed after Julie Cassimatis's sister Dawn Collette joined the board as a director.'

Nah it's all the bank's fault. Manny/Julie were just fighting for justice on behalf of their clients.

 

[Judd]

In hindsight it was apparently very foolish to come to this conclusion and place so much trust in the banks.
Don't get me wrong. I also hold Storm Financial very responsible for our position...neither is an innocent party in this nightmare.

This is where I have the problem. The banks did not provide financial advice, Storm did. The banks - or it seems certain employees of the banks facilitated the matter - lent money. So why place trust in the financiers to provide advice or even care about you? They lend, they want it back plus interest. That's what it was all about. Pretty easy to understand.

The bank lends me money to buy a home. Are they expected to provide advice on decorating the thing? Advice on possible improvements to the property to enhance it's sale value? Suggest that you put $xx amount aside per month so that your rates/insurance/maintenance costs are covered? And the buggers even expect me to pay the money back and they can jack up the interest rate. Horror!

Some of the loans involving Storm clients are obviously really suss otherwise the CBA would not have entered into the current negotiations but in the final analysis you were initially really suckered by Storm advisers. The subsequent actions are the periphery because without Storm advice you simply would not have gone there because you did not have the knowledge nor the apparently ability. The piper played and you followed, mesmerized by it all until too late.

A tip. Never invest except over your own name, over your own signature with your own broker and NEVER give anyone the right to act on your behalf in these matter except under an Enduring Power of Attorney. And if you do not understand what I am saying then stick to term deposits.

 

[Solly]

I got sent this link from a Stormer, who is now starting to feel a like happier.

Is this the real reason for the Storm saga....??

"Storm Financial had bad Feng Shui"

An older article....but a good one that you may enjoy...

 

[Solly]

"Commonwealth Bank extends commitment to customers impacted by Storm Financial"

The Commonwealth Bank has extended for another month a moratorium on interest payments for customers impacted by the collapse of Storm Financial.
The extension to 30 September 2009 is to enable customers to register for participation in the Storm Financial Resolution Scheme.

Customers who register for the Scheme will have their interest payments suspended until their participation in the Scheme ends: either through the customer accepting an offer or the customer withdrawing from the Scheme.

See the full Media Release here;

http://www.commbank.com.au/about-us/news/media-releases/2009/300709-news-storm-financial.aspx

 

[Anastasia]

This is where I have the problem. The banks did not provide financial advice, Storm did. The banks - or it seems certain employees of the banks facilitated the matter - lent money. So why place trust in the financiers to provide advice or even care about you? They lend, they want it back plus interest. That's what it was all about. Pretty easy to understand........And if you do not understand what I am saying then stick to term deposits.

I will totally ignore your condesending attitude and not give it the attention you are seeking...I just hope you feel a lot bigger for saying it and that it was worth putting me down.

If you read what I said in my earlier post, I do hold Storm very accountable for giving me the bad advise, and I cannot believe now how gullible we were but..... I believe that if the banks realized that there is every likely hood this investment will go pear shaped, that their clients would have absolutely no way of repaying the loans, then it was their duty of care not to give us the loans. When they did however keep increasing our loans over the years, it reinforced in us the belief that Storm must be giving us the right advice.

If I were prescribed a drug by my doctor and had that script continually filled by my pharmacist who knew my medical condition and he knew that it would eventually make me very ill or harm me. Qould I not hold the pharmacist accountable? Yes the doctor is very much to blame for prescribing me the drug.

But is not the pharmacist also to blame. He knows that it would eventually harm me. If he said "No I cannot give you this drug as it will harm you"; wouldn't that make me then want to get another opinion or at least question why I am being prescribed such medication.

I am sorry Judd if I am not so "bright" when it comes to finances...I guess that is why I sought financial advice. And also Judd just for your information, I am a very capable person working in a very specialised area that I feel very confident in and capable. People seek my advice because they have no or little knowledge in what I do but require my assistance. They build up a lot of trust in me and I have a duty of care to them. You see Judd....we don't have to be all knowing about everything. And if you do not understand what I am saying then don't build a house with glass walls.

 

[Garpal Gumnut]

Talking of real estate the agent took me through Manny and Julie's pile on Melton Tce. the other day. Its not a house I'd want to live in, Palazzo Pizza type place, smaller than I thought, the lift works and the views are ok, but only just ok. The chandelier doesn't look worth the money, Waterford crystal are in receivership so it may increase in value if they fold up shop. The bedrooms are ok, but not fantastic. I didn't like the kitchen. Garpaldog would not be happy in the yard. The fengshui is all wrong.

gg

I got sent this link from a Stormer, who is now starting to feel a like happier.

Is this the real reason for the Storm saga....??

"Storm Financial had bad Feng Shui"

An older article....but a good one that you may enjoy...

As you can see from the article in the Bully ( Tsv Bulletin) and from garpaldog's reaction back in February to the yard of Manny's pile on Melton Tce., the whole show was an accident waiting to happen.

Too much nouveaux clutter getting in the way of giving proper advice to the poor mugs who paid for the tawdry baubles and fibro that made up storm Headquarters.

Just driving past it any self respecting Chinese person would put his foot on the gas and crash the lights at Blackwood St. to avoid the bad fengshui.

gg

 

[Judd]

I will totally ignore your condesending attitude and not give it the attention you are seeking...I just hope you feel a lot bigger for saying it and that it was worth putting me down.

If you read what I said in my earlier post, I do hold Storm very accountable for giving me the bad advise, and I cannot believe now how gullible we were but..... I believe that if the banks realized that there is every likely hood this investment will go pear shaped, that their clients would have absolutely no way of repaying the loans, then it was their duty of care not to give us the loans. When they did however keep increasing our loans over the years, it reinforced in us the belief that Storm must be giving us the right advice.

If I were prescribed a drug by my doctor and had that script continually filled by my pharmacist who knew my medical condition and he knew that it would eventually make me very ill or harm me. Qould I not hold the pharmacist accountable? Yes the doctor is very much to blame for prescribing me the drug.

But is not the pharmacist also to blame. He knows that it would eventually harm me. If he said "No I cannot give you this drug as it will harm you"; wouldn't that make me then want to get another opinion or at least question why I am being prescribed such medication.

I am sorry Judd if I am not so "bright" when it comes to finances...I guess that is why I sought financial advice. And also Judd just for your information, I am a very capable person working in a very specialised area that I feel very confident in and capable. People seek my advice because they have no or little knowledge in what I do but require my assistance. They build up a lot of trust in me and I have a duty of care to them. You see Judd....we don't have to be all knowing about everything. And if you do not understand what I am saying then don't build a house with glass walls.

You left the "c" out out condescending.

Yep I annoy people sometinmes It is not intentional usually. My IQ is between 100 and 120. Average just like most. Very good at somethings - like most people, very bad at others - like most people. Actually very much average.

BUT having sufficient capital losses that my estate will have to deal with that issue once I shuffle off this mortal coil and having lost additional funds having to use assets to pay out loans and stuff like that, I feel OK about asking questions and being skeptical about justifications on reasons people - of average intelligence - do their dosh.

Don't know you, you don't know me. Fine. Let's keep it that way as I intend to.

 

[Anastasia]

You left the "c" out out condescending.

...people in glass houses Judd....

 

[Trevor_S]

You see Judd....we don't have to be all knowing about everything.

Indeed but the entire reason you go to School/Uni is to get an education, to go on to get a job. The main reason you get a job is to earn money. You then spend you whole life working to earn money. I would expect EVERYONE to want to spend a modicum amount of time understanding something they invest 50+ years of their life working towards ie earning money. I can't know everything but that's why I never bothered to learn how to lay a concrete slab, or work a chainsaw, or weld, or fix a car. I didn't spend my entire life working towards having one. If the Car craps itself, I will catch a taxi or ride a pushbike, inconvenient but no big deal. Some smooth talker cons me out of all my money through self imposed naivety, it's much more then an inconvenience. I am sure I fall in about the middle of the IQ bell curve, so you don't need to be the sharpest tool in the shed to work that out.

Leverage out the ying yang and buy STW and no need to pay me a commission... similar advice Storm gave "investors". I mean come on, the guy reeked... He had "Statistics for Management" on his desk for his TV ad, I have that book on the shelf behind me, that alone was enough to raise alarm bells

If you don't understand, as you insist, put it in the bank.... (oh the irony !)

Blame ? IMO
1) 70% "the investor",
2) 26% Storm,
3) 4% the banks.

The bank gave you heaps of money because that's how margin loans work (thank god), and they had security over the shares, you abdicated responsibility to monitoring that to a bunch of charlatans, now it looks like they ability to gain access to the wonderful product will be curtailed because the Government feels the need to try an attempt to protect people from themselves.

No use going after 1 or 2 as they have bupkiss, only option is to go after 3 and use the weight of a self indulgent publics poor opinion on banks to help sway the process and grab the ear of some property speculating pollie to help out.

I am sure if any of the "investors" made a motza you would not have been thanking the bank.

Situation sucks for Storm investors but it's their own doing... I will reserve my sympathy and donations for people like this

http://www.jamesnachtwey.com/jn/images/JN0011SUINGA.jpg


I didn't get anything from a shi*ty investment in Pasminco all those years ago, I should have sued the bank ? nahhh.. I take responsibility for a lack of prudent due diligence on my part

I see another charlatan is in town, Dyhpania Bolt (sp ?)... wonder how many will go ?

 

[Judd]

...people in glass houses Judd....

I'm of Irish heritage. T'was to be sure, to be sure.

 

[Judd]

...The bank gave you heaps of money because that's how margin loans work (thank god), and they had security over the shares, you abdicated responsibility to monitoring that to a bunch of charlatans, now it looks like they ability to gain access to the wonderful product will be curtailed because the Government feels the need to try an attempt to protect people from themselves.

I tend to agree. There is nothing wrong with margin loans as a product. They are very, very simple to operate and understand if you take the time (about ten minutes with a spreadsheet) and are interested. If not stay away. Just keep the bloody gearing low. Unless you have gonads the size of basket balls, wire on your chest as opposed to hair, and rip the top off long-necks with your gums as only [insert non-derisory name] need teeth, DON'T go above 30% gearing, ie asset value v loan if I have to spell it out.

That is where I have difficulty with the submission by David Price from Strategy Planning. In his submission he is proposing that only those on incomes of $180k plus should be allowed access to margin loans.

Sorry fella, but a lot on those incomes have had their Ferrari's and Porches repossessed as well as foreclosure on their homes. Plus they are selling off the holiday pad at Portsea.

Oh well, life and all that.

PS: And there is a God? Shall refrain as the person in the photograph you provided a link to, Trevor_S, requires more than profanity is able to provide. Hell can be on this earth.

 

[darkside]

This is where I have the problem. The banks did not provide financial advice, Storm did. The banks - or it seems certain employees of the banks facilitated the matter - lent money. So why place trust in the financiers to provide advice or even care about you? They lend, they want it back plus interest. That's what it was all about. Pretty easy to understand.

The bank lends me money to buy a home. Are they expected to provide advice on decorating the thing? Advice on possible improvements to the property to enhance it's sale value? Suggest that you put $xx amount aside per month so that your rates/insurance/maintenance costs are covered? And the buggers even expect me to pay the money back and they can jack up the interest rate. Horror!

Some of the loans involving Storm clients are obviously really suss otherwise the CBA would not have entered into the current negotiations but in the final analysis you were initially really suckered by Storm advisers. The subsequent actions are the periphery because without Storm advice you simply would not have gone there because you did not have the knowledge nor the apparently ability. The piper played and you followed, mesmerized by it all until too late.

A tip. Never invest except over your own name, over your own signature with your own broker and NEVER give anyone the right to act on your behalf in these matter except under an Enduring Power of Attorney. And if you do not understand what I am saying then stick to term deposits.

Judd, i will go out on a limb for you , once again i found your post , firm but fair, it got to the point , although some what brutally.
Clearly, some may want it "sugar coated" and with the level of blame pointed at someone else, lets face it, it is human nature ! cheers

 

[Anastasia]

In my life time, I have flown interstate and international many a time. I don't know how to fly a jet. I don't even know how to close the doors. I don't know what the pilot looks like, if he is healthy, young, old, of sound mind. I don't know what condition the jet is in, nor the runway, or if the wallabies have been cleared from our lovely take-off/landing strip, let alone the birds.

I don't place my life's savings in the pilots or airlines hands. But I do place my life which I believe is worth so much more. And why do I do this? Because I trust that there are enough governing bodies and standards in place to guarantee me this protection. Every governing body has a Duty of Care to their clients.....financial advisers and banks not being exempt.

Trevor_S..... I agree with you that we are culpable - but not 70%. My husband and I have belted ourselves for our naivety many a time. And we have learnt one of lifes hard lessons. We are paying the price. But so too should Storm and the financial institutions for their part in this catastrophe, and I believe that 26%/ 4% is letting them off too generously.

I wonder if in future I should check out the cockpit and see if that diploma is hanging up on the cabin wall.

 

[Julia]

I will totally ignore your condesending attitude and not give it the attention you are seeking...I just hope you feel a lot bigger for saying it and that it was worth putting me down.

Anastasia, I don't find Judd's remarks condescending. They are realistic, though. He probably wouldn't get 10 out of 10 for tact, but this is a stock forum, not a support group, as has been pointed out previously on this thread.
I'm very sorry that you're in a difficult situation. Can be difficult to be objective about things when you're so personally affected.

If I were prescribed a drug by my doctor and had that script continually filled by my pharmacist who knew my medical condition and he knew that it would eventually make me very ill or harm me. Qould I not hold the pharmacist accountable? Yes the doctor is very much to blame for prescribing me the drug.

But is not the pharmacist also to blame. He knows that it would eventually harm me. If he said "No I cannot give you this drug as it will harm you"; wouldn't that make me then want to get another opinion or at least question why I am being prescribed such medication.

Completely disagree. It's not the pharmacist's role to interfere in treatment unless you specifically were to ask him/her for advice. Even then the pharmacist's training does not equate to that of the doctor.
So the analogy doesn't hold water imo.

Ditto your analogy about pilots and planes. If you died in a plane crash, it might be nothing to do with the pilot, and lots to do with the aircraft, the weather, anything at all.

 

[darkside]

In my life time, I have flown interstate and international many a time. I don't know how to fly a jet. I don't even know how to close the doors. I don't know what the pilot looks like, if he is healthy, young, old, of sound mind. I don't know what condition the jet is in, nor the runway, or if the wallabies have been cleared from our lovely take-off/landing strip, let alone the birds.

I don't place my life's savings in the pilots or airlines hands. But I do place my life which I believe is worth so much more. And why do I do this? Because I trust that there are enough governing bodies and standards in place to guarantee me this protection. Every governing body has a Duty of Care to their clients.....financial advisers and banks not being exempt.

Trevor_S..... I agree with you that we are culpable - but not 70%. My husband and I have belted ourselves for our naivety many a time. And we have learnt one of lifes hard lessons. We are paying the price. But so too should Storm and the financial institutions for their part in this catastrophe, and I believe that 26%/ 4% is letting them off too generously.

I wonder if in future I should check out the cockpit and see if that diploma is hanging up on the cabin wall.

Anastasia, i agree, i would be more than happy whilst sitting on the international flight with you to have trust in the pilot, but then should'nt the hostie be able to fly the plane for a while, lets face it she is in the industry so that just goes without saying .

We are on the same flight are we not, i booked a seat on Asiana Airlines , i didn't know they had the worst safety record in the world , well i would have if i had done just a smidgeon of research on the airline. So here we are , the worst airline in the world with the hostie flying it, so who can i sue for putting me in this terrible predicament.

 

[Judd]

I wonder if in future I should check out the cockpit and see if that diploma is hanging up on the cabin wall.

Nah. Rather check that s/he has been snorting clean coke before trundling down the run[high]way at 200mph.

 

[Anastasia]

....There is nothing wrong with margin loans as a product. They are very, very simple to operate and understand if you take the time (about ten minutes with a spreadsheet) and are interested. If not stay away.

I agree that there is nothing wrong with margin loans and we fully understand the mechanics of its operation. When our margin loans were closed down, we had sufficient funds to pay it out.

It was our home loan that was our undoing as we, like many ex-Storm clients have mentioned in their submissions, were under the impression/ guaranteed that our homes would never be at risk...there was an "arrangement" with the banks for this never to occur. And we believed them as it was the only way we could reason as to why the banks would lend us the money in the first place.

We could and may still have to sell our home and walk away with nothing to clear the debt. But I cannot understand how in a full home loan (not low doc loan), when all assets, liabilites, incomes etc are listed, we could secure a home loan unless there was a "special" arrangement between Storm and the bank.

 

[Anastasia]

...
Completely disagree. It's not the pharmacist's role to interfere in treatment unless you specifically were to ask him/her for advice. Even then the pharmacist's training does not equate to that of the doctor.
So the analogy doesn't hold water imo.

Julia, I agree it is not the pharmacist's role to interfer in treatment nor give advice. But drugs is their business as are the side-effects and contraindications. I actually have to be on a medication which clashes with another drug. The first time I was put on it, I went through a very serious cross examination by the pharmacist. He was still not satisfied and actually phoned my doctor to clear up the point of contention.

The pharmacist ended up prescribing me the meds eventually but only after stressing his concerns and my speaking again with the doctor. The point I guess I am trying to make is that he made me alert to a fact. That I now take the drug is my decision based on all the facts. I acknowledge that it is my decision to put the tablet in my mouth...not the doctors nor the pharmacist... but I now have all the facts to make that decision. And my doctor was actually impressed with the "young" pharmacist's concerns as drug errors can happen very easily.

 

[Judd]

I agree that there is nothing wrong with margin loans and we fully understand the mechanics of its operation. When our margin loans were closed down, we had sufficient funds to pay it out.

It was our home loan that was our undoing as we, like many ex-Storm clients have mentioned in their submissions, were under the impression/ guaranteed that our homes would never be at risk...there was an "arrangement" with the banks for this never to occur. And we believed them as it was the only way we could reason as to why the banks would lend us the money in the first place.

We could and may still have to sell our home and walk away with nothing to clear the debt. But I cannot understand how in a full home loan (not low doc loan), when all assets, liabilites, incomes etc are listed, we could secure a home loan unless there was a "special" arrangement between Storm and the bank.

I certainly hope that you do not lose your home. Nup. No way. In my youth even though I was working, I actually had to spend time under a tent for a week or so. Had no funds and no where and no one to turn to. Rather unpleasant. Nobody with any semblance of empathy or a partial working brain takes any pleasure in the discomfort or distress of others.

But once we have been there do we question? Bet your bottom dollar we do.

Seems your home loan was probably "rolled-up" in your overall loan by the Good Ol' Boys at Storm.

Sh!te its complicated. Home loan taken out (who cares which bank), those funds plonked down for margin loan (which or that bank). Woodducks talked/encouraged (Where is Marhilia Jackson a'singing and a'rocking to bring the Good Lord to the people) to sign all those lovely monies over to Storm to manage. Yeah, babe, gimmie a separately managed account to Bloom after. I treat you like my own.

Once these loans are rolled up and once you hand over management of both your assets and your debts you are owned. You have lost control and are swimming with sharks.

The amount of debt trashed Storm clients. The asset value fell but the level of debt remained the same. There was no "out" unless you stood at your advisers desk with a VR1 chambered for a 505 Gibbs loaded and unlocked.

Nup. A better brain than mine is required for this quagmire but I am certain that unless individuals are prepared to stand in front of a mirror (privacy can be an avenue for quiet contemplation) and say, gently at first but getting more insistent over time, "I screwed up" there will be no personal closure.

Plucking hurts at a number of levels but ongoing anger just don't cut it.