Storm Financial Group

[Solly]

"Jostling for the money"

"SOME of the victims of the Storm Financial fiasco are in a dilemma over which way to jump for the best compensation to the losses they suffered at the hands of their so-called wealth advisers and the banks.

Law firms Levitt Robinson and Slater and Gordon are competing for custom or, as one lawyer put it, 'sniffing' money."

More by Tony Raggatt in the Townsville Bulletin here;

http://www.townsvillebulletin.com.au/article/2010/04/07/128325_business_desk.html

 

[Judd]

"Jostling for the money"

"SOME of the victims of the Storm Financial fiasco are in a dilemma over which way to jump for the best compensation to the losses they suffered at the hands of their so-called wealth advisers and the banks.

Law firms Levitt Robinson and Slater and Gordon are competing for custom or, as one lawyer put it, 'sniffing' money."

It is about now I burst out laughing. From the same article:

It seems absurd that financial advisers who were telling clients to sell up to 100 per cent of their portfolios amid the crash, are now joining clients, many of whom agreed to the sell recommendations, to go the banks for selling them out without approval.

And I seem to detect a subtle shift in Mr Raggatt's empathy but that's just me.

 

[Solly]

Just wondering how the offers from the Resolution Scheme are going ?

Those confidentiality clauses must be a real challenge.

 

[Solly]

"Litigator settles further Storm claims
ANZ resolution scheme edges closer"

"Slater & Gordon has settled a number of Storm Financial claims with NAB while resolution scheme talks progress with ANZ."

More by Kate Kachor in Investor Daily here;

http://www.investordaily.com.au/cps/rde/xchg/id/style/8895.htm

 

[Mash]

RS - Resolution scheme....... S&G telling clients this is as good as it gets and don't think about a counter offer.... not gunna happen... sign your legal rights away now.... want as many settled before a case is launched in court.... all that under the table stuff will make for a very uncomfortable time for Ralphie and co. when he has to sit in a court room and not be able to bs under parliamentary privelage. Just what i've heard.... Also understand that Brendan French (CBA) believes this is "his" scheme and ASIC will not tell him what to do....ever... his career depends on the "success" of the RS.

 

[Solly]

RS - Resolution scheme....... S&G telling clients this is as good as it gets and don't think about a counter offer.... not gunna happen... sign your legal rights away now.... want as many settled before a case is launched in court.... all that under the table stuff will make for a very uncomfortable time for Ralphie and co. when he has to sit in a court room and not be able to bs under parliamentary privelage. Just what i've heard.... Also understand that Brendan French (CBA) believes this is "his" scheme and ASIC will not tell him what to do....ever... his career depends on the "success" of the RS.

Mash, I believe that this is the same Dr French that SICAG referred to in their submission to the Parliamentary Joint Committee on Corporations and Financial Services as follows,

"SICAG acknowledges and lauds the good faith the bank has lately demonstrated in relation to
the Accelerated Resolution Process and strongly supports the initiative. SICAG believes
Brendan French and Matt Comyn, the two CBA executives charged with cleaning up the
Storm mess, are men of high quality and sincerity and look forward to working with them to
effect a just settlement for our distressed members."

I wonder if their faith has been misplaced...

 

[Mash]

It appears Frenchie has shown his true colours..... then again his career does depend on keeping CBA as squeeky clean as possible..... very embarrassing and dare I say incriminating evidence is floating around just waiting for a court appearance......CBA may just regret chopping so many heads off...

 

[Solly]

It appears Frenchie has shown his true colours..... then again his career does depend on keeping CBA as squeeky clean as possible..... very embarrassing and dare I say incriminating evidence is floating around just waiting for a court appearance......CBA may just regret chopping so many heads off...

Mash, I trust ASIC are aware of this evidence. I look forward to further developments. Looks like there are further interesting days ahead. Might be time to dust off the U-matic edit suite

 

[Cascade]

I have followed and read this thread now since it commenced. As like Sparticus, I too worked for the CBA for a long time. I would like to make a few comments without bias regarding some information that I am not sure have been mentioned previously.

The CEO of the CBA has a significant bonus coming to him if the CBA achieve 1st place by 30 June 2010 in customer satisfaction, could this be the reason why the Bank is trying paint itself in such a good picture in the public eyes?

The Bank admitted to shortcomings in its lending practices even though the Home Loans that were written for Storm were all approved within the Bank’s policy at the time. In early 2009, the Bank audited a large majority of the loans that were written and were found to be compliant including the calculation of income. The shortcomings that they found were loopholes in their own policies that have since been changed across Australia. With the changes made, the Bank would no longer be able to lend money to Storm customers.

The argument that Storm clients should never have been lent the money is an interesting one. As at December 2008, I don’t think there were any loans that were in arrears or default as a result of Storm clients not being able to repay the loans therefore there would be a suggestion that they could afford the loans. That’s said though, when the CBA sold their shares they took away the source of income that the Bank relied on in the first place to approve these loans.

I will be interested to see who walks away from this benefiting from the whole ordeal, obviously some Solicitors will but who else, maybe Ralph?

 

[Mash]

"The CEO of the CBA has a significant bonus coming to him if the CBA achieve 1st place by 30 June 2010 in customer satisfaction, could this be the reason why the Bank is trying paint itself in such a good picture in the public eyes?" ......interesting info thanks Cascade ....

Should have known Ralph would have his finger in the pie .... or maybe a more apt description would be ....snout in the trough.....

and to Solly..... ASIC have been speaking to clients and tying up loose ends with gusto over the past few weeks..... the landscape is beginning to change..... we are led to believe certain advisors are in their sights in the next few weeks....

I trust they will then have EC, JC and the likes of Ralphie boy in their sights as well!!!! They all deserve to rot in hell together !! The truth is out there it just has to see the light of day! :chainsaw:

 

[Solly]

I have followed and read this thread now since it commenced. As like Sparticus, I too worked for the CBA for a long time. I would like to make a few comments without bias regarding some information that I am not sure have been mentioned previously.

The CEO of the CBA has a significant bonus coming to him if the CBA achieve 1st place by 30 June 2010 in customer satisfaction, could this be the reason why the Bank is trying paint itself in such a good picture in the public eyes?

The Bank admitted to shortcomings in its lending practices even though the Home Loans that were written for Storm were all approved within the Bank’s policy at the time. In early 2009, the Bank audited a large majority of the loans that were written and were found to be compliant including the calculation of income. The shortcomings that they found were loopholes in their own policies that have since been changed across Australia. With the changes made, the Bank would no longer be able to lend money to Storm customers.

The argument that Storm clients should never have been lent the money is an interesting one. As at December 2008, I don’t think there were any loans that were in arrears or default as a result of Storm clients not being able to repay the loans therefore there would be a suggestion that they could afford the loans. That’s said though, when the CBA sold their shares they took away the source of income that the Bank relied on in the first place to approve these loans.

I will be interested to see who walks away from this benefiting from the whole ordeal, obviously some Solicitors will but who else, maybe Ralph?

Thanks Cascade for your insight. I've just spent the afternoon with a Stormer, I hope he reads your post. He's struggling, hasn't received an offer and is starting to look like a hunched disheveled man far beyond his years. He's asking himself what wrong did he really do ?

He invested through a licenced, sanctioned financial advisory business with perceived solid links to the CBA. He's not a high flyer nor a participant in the Pirates of Penance dalliances. He was there for the long haul to hopefully have a modest secure retirement. Now he's in a limbo waiting to see what relief can come his way.

Sir Ralph appears to me to be in a secure position and largely unaffected.
Manny hasn't given an update on his website for many months, I can only speculate on his actual financial position.

I'm starting to miss those days at Harry's......

 

[Solly]

"The CEO of the CBA has a significant bonus coming to him if the CBA achieve 1st place by 30 June 2010 in customer satisfaction, could this be the reason why the Bank is trying paint itself in such a good picture in the public eyes?" ......interesting info thanks Cascade ....

Should have known Ralph would have his finger in the pie .... or maybe a more apt description would be ....snout in the trough.....

and to Solly..... ASIC have been speaking to clients and tying up loose ends with gusto over the past few weeks..... the landscape is beginning to change..... we are led to believe certain advisors are in their sights in the next few weeks....

I trust they will then have EC, JC and the likes of Ralphie boy in their sights as well!!!! They all deserve to rot in hell together !! The truth is out there it just has to see the light of day! :chainsaw:

Mash, somebody gave me this card, maybe I should make a follow up call on Monday to see what further details I can find out and share with this forum...

 

[Garpal Gumnut]

"Jostling for the money"

"SOME of the victims of the Storm Financial fiasco are in a dilemma over which way to jump for the best compensation to the losses they suffered at the hands of their so-called wealth advisers and the banks.

Law firms Levitt Robinson and Slater and Gordon are competing for custom or, as one lawyer put it, 'sniffing' money."

More by Tony Raggatt in the Townsville Bulletin here;

http://www.townsvillebulletin.com.au/article/2010/04/07/128325_business_desk.html

Unfortunately many of the Storm victims are elderly and unwell, some illness a direct consequence of this debacle.

They are now being offered differing difficult options when they are in no mental state to be making appropriate decisions.

This has occurred due to the imbalance of power between the Banks/Cassimatises/Lawyers on the one hand and the Storm Clients on the other.

The legal system favours the rich and powerful and leaves the victims of financial scams at a tremendous disadvantage.

Now is the time for ASIC to show that it is fulfilling its mien, otherwise it needs to be dissolved.

gg

 

[Solly]

Unfortunately many of the Storm victims are elderly and unwell, some illness a direct consequence of this debacle.

They are now being offered differing difficult options when they are in no mental state to be making appropriate decisions.

This has occurred due to the imbalance of power between the Banks/Cassimatises/Lawyers on the one hand and the Storm Clients on the other.

The legal system favours the rich and powerful and leaves the victims of financial scams at a tremendous disadvantage.

Now is the time for ASIC to show that it is fulfilling its mien, otherwise it needs to be dissolved.

gg

gg, did you see the interview with Tony D'Aloisio by Alan Kohler on Inside Business this morning ?

I sent out a general tweet when I found out it was on.

I agree with your comment that it is 'time for ASIC to show that it is fulfilling its mien'.

It is an interesting interview especially in reference to Storm.

The Vodcast should be up soon on;

http://www.abc.net.au/insidebusiness/

 

[Solly]

"Law firms battle over Storm Financial bank compensation"

"A WAR of words has broken out between law firms as Storm Financial investors come to grips with compensation deals they have been offered by the Commonwealth Bank."

More by Stuart Washington in The Age here;

http://www.theage.com.au/business/law-firms-battle-over-storm-financial-bank-compensation-20100411-s0uh.html

 

[bunyip]

The argument that Storm clients should never have been lent the money is an interesting one. As at December 2008, I don’t think there were any loans that were in arrears or default as a result of Storm clients not being able to repay the loans therefore there would be a suggestion that they could afford the loans.

That's interesting, considering the numerous complaints from Stormers about banks advancing them loans that they couldn't afford to service.

Whether or not they could service their loans, it's the responsibility of every borrower - Stormers or otherwise - to ensure they'll be able to meet their loan commitments before they apply for a loan. Otherwise they shouldn't make the loan application in the first place.
If their loan application is successful, but they find themselves unable to meet the loan commitments, I think it's a bit rich if they then criticise the bank for lending them the money.

That's a bit like me asking a farmer to let me ride his horse. But then I blame the farmer when I fall off the horse and break my arm.

 

[Solly]

That's interesting, considering the numerous complaints from Stormers about banks advancing them loans that they couldn't afford to service.

Whether or not they could service their loans, it's the responsibility of every borrower - Stormers or otherwise - to ensure they'll be able to meet their loan commitments before they apply for a loan. Otherwise they shouldn't make the loan application in the first place.
If their loan application is successful, but they find themselves unable to meet the loan commitments, I think it's a bit rich if they then criticise the bank for lending them the money.

That's a bit like me asking a farmer to let me ride his horse. But then I blame the farmer when I fall off the horse and break my arm.

bunyip, I have had quite lengthy discussions with one Stormer about their understanding of the Storm strategy. What became very apparent to me was that they truly believed that they were not in a high risk strategy and that there were safeguards in place to cover any market corrections that happened. They explained to me that they believed that the Storm strategy had worked in previous market corrections.

They had confidence in the advice that the company was giving and the banks involved. They believed that the banks would not lend the money if the strategy was flawed, especially when housing loans, margin loans and Storm badged funds all fell under the umbrella of the one of the most respected banks in Australia.

 

[shiftyphil]

That's a bit like me asking a farmer to let me ride his horse. And lying to the farmer about your horse-riding experience. But then I blame the farmer when I fall off the horse and break my arm.

I think that's even closer...

 

[Solly]

I think that's even closer...

shiftyphil, Are you suggesting that Stormers deliberately misrepresented their income on their loan documents?

 

[Mash]

Bunyip ... did u read the post by cascade..... December 2008.... that really is no surprise..... that's when the proverbial hit the fan..... as has been pointed out adnausium..... those loans could only be serviced by the income from the investments.... once the investments went south then no more income ...... sorry wasting my time trying to explain to your ilk