What 'vested interests' are you suggesting, harleyquin?
The usual suspects of course, Julia. Not worth loosing any sleep over it, or anything else for that matter. I've reached the situation where I simply don't care anymore.
What 'vested interests' are you suggesting, harleyquin?
The usual suspects of course, Julia. Not worth loosing any sleep over it, or anything else for that matter. I've reached the situation where I simply don't care anymore.
You're right, of course, Judd. It's just so silly. Presumably the supposition is that - should anyone here hold bank shares - they are ipso facto bound to defend the banks. It has already been established that, even if that were not too ridiculous to be true, any payout by the banks to ex Storm clients will affect their bottom line unnoticeably.
None of that, however, will diminish the pain of those who lost money. I can understand that directing blame anywhere will probably at least feel helpful.
It wasn't bothering those of us who are shareholders apparently, bunyip. The SP actually went up following the announcement.
hence the ‘acknowledgment by all parties that the bank denied any wrongdoing in relation to both proceedings.’
I think that you will find that this is quite common in any settlement agreement. I deal with claims in my current position working for a FSP and every single deed of settlement we create states that we do not admit any liability for any wrongdoing. Even if we are in fact paying the client out on their claim.
Its just so that the settlement is full and final, there is no chance for the claimants to bring more claims in the future and they cannot say anything to the media. The BOQ would never agree to settle unless that was a clause in the deed.
I realize that. My point was that ASIC and the law firms wouldn’t have agreed to this relatively small settlement by BOQ, and certainly wouldn't have been willing to acknowledge that BOQ denied any wrong doing, if a watertight case had been presented to prove illegal activity by BOQ. They would have rejected this offer and ‘gone for the juggler’, so to speak, if they considered their case was strong enough to achieve a considerably larger payout.
Cassimatis civil penalty proceeding
Court appearances
7 and 10 November 2014
The parties participated in a confidential mediation on 7 and 10 November 2014, which did not result in any agreement to resolve the proceedings. ASIC's action will continue and will be listed for directions before the court on a date to be fixed.
Charge against Walter John Fullerton-Smith withdrawn
.... following a reassessment of the evidence due to the recent death of an elderly prosecution witness (whose evidence was considered to be vital in proving its case) and other developments, the CDPP has withdrawn the charge.
Storm Financial victims take class action against ASIC for negligence claiming it didn’t act when it knew risk
AUSTRALIA’S corporate watchdog is being sued for negligence over its role in the Storm Financial scandal.
Thousands of mum and dad investors lost their life savings and, in some cases their homes, in the $3 billion collapse of the Townsville-based financial planning company in 2009.
I still reckon the problem lies with Financial Advisers.
They are muppets.
I wouldn't send one down to the local 7/11 for a packet of smokes. They would probably come back with Tim Tams and tell you it was better for you.
gg
Bank shuts down controversial North Ward branch
TONY RAGGATT
Townsville Bulletin
May 30, 2015 8:28AM
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BANK of Queensland’s North Ward branch is to be shut down just weeks after another scandal involving false witnessing of loans.
The bank last night confirmed the “mutually agreed” closure would occur on June 30, with clients moved to other local branches.
The North Ward branch came under heavy scrutiny for its lending to clients of Storm Financial.
It was responsible for low-doc loans to pensioners and borrowings of more than $100 million, mostly secured against people’s homes.
Bank spokesman Jamin Smith said agreement on the closure had been reached by the bank and branch owner-managers Declan Carnes and Matthew Buchanan.
The franchise agreement would not be renewed, Mr Smith said.
“As a result of this decision, the North Ward branch will be closing on June 30, 2015,” he said.
The branch’s customers would be “very well looked after by other managers”, while the bank would work with other Townsville owner-managers to try to find roles for the branch’s employees, Mr Smith said.
Mr Carnes sent an email to some clients yesterday thanking them for their “business and trust”.
“BOQ and both Matthew and myself have mutually agreed that, after 11 years as owner-managers, we will be leaving the bank,” the email read.
“As most of you know, Matthew and I have been with the bank over 20 years and it is time for a change.”
The North Ward branch was a key conduit for Storm, lending more than $20 million a month at the height of Storm’s popularity in 2007.
Bank documents indicated the branch was earning $100,000 a month in upfront commissions, while the bank’s take was estimated at more than $175,000 a month.
Property data showed Mr Carnes and Mr Buchanan amassed about $10 million in property assets in the four years leading up to the collapse.
But the bank’s 260 Storm clients as well as some other clients unrelated to Storm have been ruined.
North Ward client Helen Chambers, 75, whose income was found to have been incorrectly listed in loan documents at $104,000, yesterday said she was subject to bank reviews to be able to stay in her home.
This year Bank of Queensland sued Mervyn and Pamela Hills, both 70, for hundreds of thousands of dollars owed on a loan to buy a fish shop.
During the court case, Mr Carnes admitted staff regularly falsely witnessed loan applications.
In 2010, ASIC sued North Ward franchisee Senrac Pty Ltd but the case was dropped when Bank of Queensland agreed to a $17 million settlement with Storm customers.
One of those, Townsville’s Steve Reynolds, said he was in a no-win situation, with the bank now threatening to remove hardship provisions in return for him accepting a 10 per cent payout from the settlement.
“(They) have me and all the others by the short and curlies,” he said.
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