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.
Surely no one would believe that the banks efforts so far are anything more than harm and payout minimisation.
Do some Stormers actually have documentation proving that The Bank inflated valuations?.
They worked hand-in-glove with storm to ramp up borrowings by providing inflated valuations for that express purpose, set up a distinct BSB no for storm borrowings etc.
Monario
Let's be fair here.....most of the people in this forum who have attributed any blame to you Storm investors have said you must bear your share of the responsibility for taking on unsustainable levels of borrowing etc etc.
I don't know of anyone whose put 100% of the blame on you. If anyone has, then they're very much in the minority.
Most of us have the sense to see that Storm, the banks, and the individual investors themselves all played a part in the debacle that resulted from investing through Storm Financial.
STORM financial is a dead horse, the CBA took care of that and they have ensured that there is no compensation within that area that can help the victims.
!
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.
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!!
Do some Stormers actually have documentation proving that The Bank inflated valuations?
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!
"Senator at a loss over blame for Storm"
"More than 400 written submissions and seven public hearings have failed to answer what caused thousands of clients heavy losses in the collapse of Storm Financial, a member of the federal parliamentary inquiry into the company has conceded."
Read more by Duncan Hughes in The Australian Financial Review of Tuesday, 08 September 2009.
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.
Thanks, Dock. As I imagined.A direct quote from the CBA's submission to the Senate Enquiry:
"What we’ve learned from Storm..........
Thanks, Dock. As I imagined.
In particular this passage from the CBA's submission:
These guys have very close family ties and alternative views as to how "Justice" is determined and administered.
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.
"Senator at a loss over blame for Storm"
"More than 400 written submissions and seven public hearings have failed to answer what caused thousands of clients heavy losses in the collapse of Storm Financial, a member of the federal parliamentary inquiry into the company has conceded."
Read more by Duncan Hughes in The Australian Financial Review of Tuesday, 08 September 2009.
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