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GG,
What is your confidence level of any of the participants in this saga actually ending up doing porridge in the 'Creek' ?
S
This is probably the best summary of Storm matters to date, unfortunately due to the libel laws Mitch was unable to publish or flesh out the stupidity and culpability of some, mentioned and unmentioned in the article.
gg
GG,
What is your confidence level of any of the participants in this saga actually ending up doing porridge in the 'Creek' ?
S
My confidence level is quite low.
It has all along hinged on ASIC's performance and it is just one big Muppet Show at present.
I doubt if anyone will do any time.
gg
Yes, I am starting to wonder myself if ASIC will ever recommend any criminal charges against any parties.
I was looking forward to spending a few weeks at Lennons in the New Year to follow any possible proceedings.
The competition and consumer watchdog has been asked to investigate collusion between Storm Financial and the banks in the lead-up to the company's $3 billion collapse. According to Sydney lawyer Stewart Levitt, it is the ACCC, not ASIC, that should investigate why Storm clients were automatically approved for margin loans up to 90 per cent against their investment equity values, during the height of the global financial crisis. The risky loan-to-value ratios led to disastrous outcomes for clients, with hundreds owing more than their investments were worth when banks sold down the Storm-badged funds in late 2008. Mr Levitt said this might have occurred because "Storm, through its founder, Emmanuel Cassimatis, had demonstrated that it could direct billions of dollars of business to the banks, both for retail and margin lending".
The competition and consumer watchdog has been asked to investigate collusion between Storm Financial and the banks in the lead-up to the company's $3 billion collapse. According to Sydney lawyer Stewart Levitt, it is the ACCC, not ASIC, that should investigate why Storm clients were automatically approved for margin loans up to 90 per cent against their investment equity values, during the height of the global financial crisis. The risky loan-to-value ratios led to disastrous outcomes for clients, with hundreds owing more than their investments were worth when banks sold down the Storm-badged funds in late 2008. Mr Levitt said this might have occurred because "Storm, through its founder, Emmanuel Cassimatis, had demonstrated that it could direct billions of dollars of business to the banks, both for retail and margin lending".
Great, I can see it now. ASIC takes two years to determine that in fact the ACCC should have been investigating this whole affair. The ACCC, not content with ASIC investigations decide to hold their own. This then takes another two years....Meanwhile storm victims continue to go bottom up waiting for this to end. The only winner is the banks who through attrition simply outlast everyone else. Ralph Norris must be laughing all the way to the bank............He is untouchable......
My confidence level is quite low.
It has all along hinged on ASIC's performance and it is just one big Muppet Show at present.
I doubt if anyone will do any time.
gg
"Storm victims to learn of legal action"
"Thousands of Storm Financial victims will learn tomorrow whether the federal government will pursue legal action against up to six banks."
More by Courtney Trenwith on brisbanetimes.com.au
http://www.brisbanetimes.com.au/queensland/storm-victims-to-learn-of-legal-action-20101125-188i6.html
Interesting times. As the Chinese would say ole mate.
gg
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