(26 October 2009 – Australia) John Hoey, state regional manager, Commonwealth Bank (CBA) has retired after 40 years, amongst speculation his resignation was prompted by the bank’s involvement in the Storm Financial scandal.A spokesperson for the bank last night told the Townsville Bulletin that Mr Hoey has announced his retirement after 40 years with the Commonwealth Bank.
The bank, however, denies the resignation is in relation to its involvement in the Storm Financial scandal.
Mr Hoey has had a long and distinguished career with the bank and has now decided it is time to retire, the bank’s spokesperson said.
Three staff have already left positions at the Townsville branch following internal bank inquires as a result of the fall-out of the Storm crisis.
Of the estimated A$3 billion of losses of Storm clients money, around 2,500 out of the 4,000 customers affected were CBA customers.
CBA has stated that the Townsville branch acted independently and against usual lending practices in relation to Storm.
However, two former employees have told the Federal Parliamentary inquiry investigating the collapse that the value of Storm Financial business in CBA increased from A$20 million in 2002/03 to A$120 million in 2007/08, and two full time positions were approved by CBA to service Storm Financial clients.