Reporter : Ted Baxter
Content : ASIC & CBA compensation, ASIC compensation model, Storm Financial settlement, CBA UMIS.
Tuesday 18th September 2012
The inevitability that ASIC would protect the CBA at all costs finally came to fruition on Friday 14th September 2012 with the creation of the ‘ASIC and CBA Storm Financial Settlement’ and the ‘ASIC Compensation Model’. The CBA, because it has the money, was able to buy its way out of prosecution whilst at the same time admitting ‘no liability whatsoever’ or ‘any wrongdoing’ towards Storm clients.
“By settling the ASIC UMIS Proceeding brought against it by ASIC, CBA admits no liability in relation to ASIC’s allegations and the terms of the agreement reached between ASIC and CBA reflect this.” – extract 3.2 from ASIC and CBA Storm Financial Settlement
So, CBA is off the hook for the UMIS…which in the opinion of The Plain Truth did not exist anyway.
However the most astonishing and diabolical component of this whole shame (the ASIC settlement and compensation model) is the CBA obtaining from ASIC, TOTAL IMMUNITY from ALL and ANY Storm related prosecutions, including all margin loan dealings, illegal sell-downs and unauthorised closing of funds.
“The settlement reached between ASIC and CBA means that ASIC will not bring any action against CBA along the lines of the action ASIC has brought on behalf of Mr and Mrs Doyle in the Doyle Proceeding. ASIC will not be taking any other action against CBA.” – extract 5.1 from ASIC and CBA Storm Financial Settlement.
So much for Sir Ralph’s famous mia culpa – “Our customers can be assured that where we have done wrong, we will put it right.” The fact is that Sir Ralph, Dame Ina Narev nor their kingdom of CBA have parted with $1 for any wrongdoing. All settlement deeds, and we mean ALL, have absolved the Commonwealth Bank of ANY wrongdoing with respect to Storm.
The extent of CBA’s power and influence, especially over ASIC, appears to be overwhelming. One can only imagine the dirt that the CBA has on ASIC to be able to purchase full immunity for such a meagre cost. The price that the racketeer ASIC is selling Storm clients silence to the CBA for is a mere 0.3% of the banks $88 Billion market capitalisation. This is equivalent to someone who is worth $1,000,000 compensating a grievous wrongdoing with $3,000 and getting complete immunity.
To make matters worse, the CBA has so far only paid out less than half the amount claimed with the words, “up to” prefacing the last $136M. The CBA has received immunity from ASIC prosecution by offering an amount of money to victims which is clearly unacceptable to those victims and far short of the extent of CBA’s wrongdoing. This has been confirmed to The Plain Truth by an independent group of forensic accountants. The dastardly ASIC Compensation Model provides CBA with immunity even if the aggrieved victims do not accept the minimal compensation offered and it remains in CBA coffers.
Credible information from an internal ASIC source which has come into our possession recently claims that in the recent secret negotiations between CBA and ASIC, the Commonwealth Bank agreed to keep quiet about the role ASIC played in the demise of Storm and the losses suffered by clients. The Plain Truth must declare however that although we trust our source and find the information consistent with other allegations, we are unlikely to get documentary evidence confirming this assertion. Our source will however make best endeavours to accommodate us with more than…a statement.
Although we have not seen a deed yet we suspect that claims against ASIC will be prohibited as well as claims against the CBA. Maybe ASIC has been reading our previous articles, “ASIC ‘PANIC ATTACK’ HAD FATAL CONSEQUENCES FOR STORM CLIENTS.”, “Part I – ASIC liable for ‘gagging’ compensation” and “The ASIC ‘gag’ of Storm now exposed as the key for compensation.”, that highlight ASICs involvement and subsequent requirement for them to compensate victims as well. By creating the ‘ASIC and CBA Storm Financial Settlement’ and any subsequent ASIC disclaimer absolving them of responsibility, ASIC found another method of covering their past mistakes.
At this juncture it is important for those who were unable to speak to their advisor in late 2008 as a result of ASICs gagging that each such individual put in a separate claim for compensation against ASIC. Such claims should be put directly to ASIC with the question, “WHY DID YOU GAG STORM WHEN ASIC HAD NO AUTHORITY OVER MARGIN LENDING?” and “WHAT IS ASIC GOING TO DO ABOUT COMPENSATING ME?”
The Editor
The Plain Truth,
PO Box 2783
New Farm QLD 4005
Content : ASIC & CBA compensation, ASIC compensation model, Storm Financial settlement, CBA UMIS.
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