Ironhalo - it actually say's ex-investors not ex-clients (though its quite possible some were both). Its also possible some were ex-advisors given that quite a few advisors as I understand it were also investors in Storm.Ironhalo said:Manny had a meeting with ex-clients eh?
I cannot believe that some of them are still so gullible.
"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.
"NAB in the eye of the Storm over loan"
"THE National Australia Bank has been dragged into the events around the collapse of Townsville-based Storm Financial with allegations that a NAB loan to a Townsville man organised through Storm did not contain correct information."
More by Andrew Fraser in The Australian here;
http://www.theaustralian.news.com.au/business/story/0,28124,26050846-643,00.html
Ironhalo - it actually say's ex-investors not ex-clients (though its quite possible some were both). Its also possible some were ex-advisors given that quite a few advisors as I understand it were also investors in Storm.
They were ex-clients of Storm.
Steve, Duncan Hughes reports in the article,
that the meeting was attended by, EC, his lawyer Stephen Russell and approx 20 "invited former investors". The meeting set out grounds for legal action and was strictly confidential.
Solly
Duncan Hughes uses the term investor, as in investor with Storm, interchangeable with client (of Storm).
Steve, the word 'invited' is interesting.
"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
Solly
Might be the only ones with any money left?
My goodness, its hard to belive all that has happened and still more comes out, and continues to go on!!
These Banks, and companies, executives, board sitters etc. need to be taught a lesson!! I just wonder who will have the Kahunas to do it..
If every Aussie drew there funds out of Banks for just 1 week, I would like to see how they would scramble to find out why and make any ammends needed. Once a Bastard always a Bastard!!
If every Aussie drew there funds out of Banks for just 1 week, I would like to see how they would scramble to find out why and make any ammends needed. Once a Bastard always a Bastard!!
Thats called a bank run - if every aussie did it to the major banks then they firstly they wouldn't have the available cash to actually pay everyone out (banks don't have much of your cash at hand, the bulk of it is on loans to people). In order to meet the cash calls and to maintain adequate capital adequacy ratios they'd have to sell down assets (which means calling in loans - i.e. foreclosures and forced home selldowns even if people are not in default).
This would cause a complete freeze in the economy and lead to another great depression scenario.
Yes, this story has been repeated over and over and it's the bit I simply can't get over.He admitted that although he had signed the loan application, the content was completed by a Storm adviser with no input from himself.[/I]
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Above is an extract from the story in one of the links provided by Solly.
Here we have yet another example of a person foolishly signing a loan application, then allowing someone else to fill in the content.
Then when he's offered a loan that he has no hope of servicing, he takes it anyway!
It almost beggars belief - what are people thinking when they do things like this??
This refers to Korda Mentha receiving ongoing payments from Storm clients' funds."Storm receiver under fire over client treatment"
"The Storm Investors Consumer Action Group says its members are angry about the way they have been treated by Storm Financial's receiver."
More on the ABC here;
http://www.abc.net.au/news/stories/2009/09/10/2681779.htm
Which is why the government stepped in to guarantee deposits when they did. And no doubt why they will be reluctant to withdraw said guarantees.Thats called a bank run - if every aussie did it to the major banks then they firstly they wouldn't have the available cash to actually pay everyone out (banks don't have much of your cash at hand, the bulk of it is on loans to people). In order to meet the cash calls and to maintain adequate capital adequacy ratios they'd have to sell down assets (which means calling in loans - i.e. foreclosures and forced home selldowns even if people are not in default).
This would cause a complete freeze in the economy and lead to another great depression scenario.
Puts it all rather into perspective, Cuttlefish. Well summarised.And for what its worth - its not actually in the banks interest to lend money to people that don't have adequate assets and also can't afford to repay the loans either - thats not good banking businees. So the banks will look into this situation regardless because they ultimately lose money when somebody borrows more than they can afford to repay.
Who's at fault?
* Are all CBA, BOQ and Maquarie clients bankrupt?
* Are less than 1% of CBA, BOQ and Macquarie clients bankrupt?
* Are any ex Storm investors bankrupt?
* Are greater than 10% of ex-Storm investors bankrupt?
* How many completed and signed loan application forms that contained incorrect or misleading information did the banks receive from non-Storm clients?
* How many completed and signed application forms that contained incorrect or misleading information did the banks receve from Storm clients?
* How many clients of other financial advice firms went broke or lost the majority of their wealth?
* How many clients of other financial advice firms applied for finance using completed loan application forms that contained false or misleading information?
Whats the common denominator?
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