Stormin_Norman
Currency Trader
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- 12 January 2008
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he probably didnt want to give the investors the bad news they had nothing; so just waited till the banks did it.
One comment that Cassimatis made in the interview led me to think that CBA may have not made the margin calls until the share portfolio's were well over the margin limit - as opposed to making the margin calls and selling the stock as soon as they hit the margin limit. This may have occurred - and if it did then people possibly didn't get margin called until they were a lot further into the red than they were supposed to be. This would understandably be a cause of frustration but is also quite a ridiculous thing to rely upon.
I saw a devastated man who can't believe his empire was pulled from under him.....
Life is a hard task master.
Transcript here:
http://www.abc.net.au/7.30/content/2008/s2475656.htm
Perhaps my expectations were unrealistic, but I found the interview disappointing. Cassimatis should have been put properly on the spot with quotes of actual LVR's reported by clients, and examples of the excessive leveraging given.
As it was, Cassimatis' statement that it would all have been just fine had the CBA not prematurely acted was pretty much allowed to stand.
Pity the CBA didn't choose to participate but I suppose they will be keeping their comments for where it matters.
Perhaps my expectations were unrealistic, but I found the interview disappointing. Cassimatis should have been put properly on the spot with quotes of actual LVR's reported by clients, and examples of the excessive leveraging given.
As it was, Cassimatis' statement that it would all have been just fine had the CBA not prematurely acted was pretty much allowed to stand.
Pity the CBA didn't choose to participate but I suppose they will be keeping their comments for where it matters.
Perhaps my expectations were unrealistic, but I found the interview disappointing. Cassimatis should have been put properly on the spot with quotes of actual LVR's reported by clients, and examples of the excessive leveraging given.
As it was, Cassimatis' statement that it would all have been just fine had the CBA not prematurely acted was pretty much allowed to stand.
Pity the CBA didn't choose to participate but I suppose they will be keeping their comments for where it matters.
STORM CLIENT: I'm embarrassed that this happened - that I've done this to my family, yes. Let down? Yes.
PETER MCCUTCHEON: Let down by whom?
STORM CLIENT: I don't know. Someone - someone's dropped the ball.
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Amazing isn't it, that some of those former Storm clients truly don't seem to understand how it happened. With regard to the client quoted above, he appears to be genuinely unaware that he himself is one of those people who 'dropped the ball', firstly, by not making himself fully conversant with the ins and outs of margin lending and the fearsome risks it can involve. And secondly, by not having any input into the management of his investments.
Mind you, it's a bit hard to make any intelligent input if you have virtually zero knowledge. But there's no excuse for having zero knowledge.
A 73 year old man was interviewed on my local TV station tonight. Former army officer, put half a million dollars under management with Storm when he retired some years ago. Got to a net worth of 4.6 million but has now been completely wiped out.
He and his wife were still singing the praises of the Storm principals, saying they did nothing wrong and had made every effort to look after the interests of their clients. Clearly, this is another bloke who just had no concept of the risks associated with margin lending, and how over-gearing a margin loan can be disastrous. He appeared to be totally unaware that over-gearing was probably the primary cause of his downfall.
Meanwhile, that slimy lawyer at the Storm meeting was beating the drum and doing his best to promote outrage among Stormers by telling them what they wanted to hear. That law firm must be just about drooling at the mouth in anticipation of the juicy bounty they'll get from all this.
Townsville real estate agency Ferry Property confirmed yesterday that Emmanuel and Julie Cassimatis, founders of collapsed financial planning empire Storm Financial, had listed their Melton Terrace mansion for sale.
What will become of the Cassimatises, however, who have applied for a new licence to operate as financial planners, remains to be seen, although there are suggestions they plan to move into their other opulent mansion, a 1ha estate called Villa Paradiso at Belmont near Brisbane.
Does anyone have a contact number for the Storm Investors Consumer Action Group?
Any one know Mr. & Mrs. C. CV's?
What is their back ground?
I have been with my advisor for over 18yrs. She had changed from MLC to Ozdaq securities and then Storm until she retired. When looking through the paperwork I saw Ozdaq Securities was signed off by Julie Cassamattis?
Was Ozdaq securities the same company and then changed name to Storm?
I have the same story as most. But I have survived for over 18yrs with moderate LVR's. Never redeemed anything always reinvested. It seems over last 2-3yrs the lending became aggressive by storm. Push, push push. But responsibility is mine. Although I was always assured the interest payments were being met by the portfolio and it was still growing. Didn't know how to do figures to check. Left it there. Other than sad I feel highly embarrassed. This event has financially wiped out two generations of my family.
I have been with my advisor for over 18yrs. She had changed from MLC to Ozdaq securities and then Storm until she retired. When looking through the paperwork I saw Ozdaq Securities was signed off by Julie Cassamattis?
Was Ozdaq securities the same company and then changed name to Storm?
I have the same story as most. But I have survived for over 18yrs with moderate LVR's. Never redeemed anything always reinvested. It seems over last 2-3yrs the lending became aggressive by storm. Push, push push. But responsibility is mine. Although I was always assured the interest payments were being met by the portfolio and it was still growing. Didn't know how to do figures to check. Left it there. Other than sad I feel highly embarrassed. This event has financially wiped out two generations of my family.
One comment that Cassimatis made in the interview led me to think that CBA may have not made the margin calls until the share portfolio's were well over the margin limit - as opposed to making the margin calls and selling the stock as soon as they hit the margin limit. This may have occurred - and if it did then people possibly didn't get margin called until they were a lot further into the red than they were supposed to be. This would understandably be a cause of frustration but is also quite a ridiculous thing to rely upon.
It is incredibly poor portfolio management to rely on a lender to execute a margin call/sale of stock rather than monitoring the position of the portfolio yourself.
I assume that Cassamatis managed private investors portfolios on their behalf, or that we are talking about margin calls on the Storm baded index funds? Anyway, interesting insight, on balance my subjective view (i.e. opinion only) is still that Storm bears the main responsibility for the situation. (and that any investor that has borrowed a lot of money bears a high level of personal responsibility for monitoring the investments made with that money).
There's also downloadable video on the right hand side of the page on the link Solly posted.
http://www.abc.net.au/7.30/content/2008/s2475656.htm
Perhaps my expectations were unrealistic, but I found the interview disappointing. Cassimatis should have been put properly on the spot with quotes of actual LVR's reported by clients, and examples of the excessive leveraging given.
As it was, Cassimatis' statement that it would all have been just fine had the CBA not prematurely acted was pretty much allowed to stand.
Pity the CBA didn't choose to participate but I suppose they will be keeping their comments for where it matters.
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