Bendigo and Adelaide Bank lay claim to margins
(19 January 2010 – Australia) Australia’s federal court has ruled that Bendigo and Adelaide Bank’s claim to a lawyer’s A$4.8 million margin-call account is valid, according to Bloomberg News.
The ruling now indicates that the institution has the right to make demands on around 18,500 margin-loan customers.
A judge’s decision that margin-loan contracts weren’t legally transferred when Bendigo brought a A$1.5 billion margin-lending business from Macquarie Group in early 2009 for A$52 million, was overturned by a three-member panel of the Full Court of the Federal Court of Australia.
Among the customers whose margin loans were transferred to Bendigo’s Leveraged Equities unit following the sale was Sydney trial lawyer, Ross Goodridge.
In February last year, Federal Court Judge, Steven Rares rules that the transfer was not legal and that Leveraged Equities acted improperly when it sold Mr Goodridge’s investments to cover a margin-loan shortfall.
Mr Rares ordered Bendigo and Leveraged Equities to return the investments.
Judge Margret Stone ruled that Mr Goodridge must now return the 5.6 million units of Macquarie CountryWide Trust he was awarded after the trial, or A$5 million, to Leveraged Equities and Bendigo.
However, Mr Stone also agreed to let Mr Goodridge file a request within 14 days to place the order on hold pending a possible appeal to the country’s High Court.
Mr Goodridge said he will "probably appeal."
A judge’s decision that margin-loan contracts weren’t legally transferred when Bendigo brought a A$1.5 billion margin-lending business from Macquarie Group in early 2009 for A$52 million, was overturned by a three-member panel of the Full Court of the Federal Court of Australia.
Among the customers whose margin loans were transferred to Bendigo’s Leveraged Equities unit following the sale was Sydney trial lawyer, Ross Goodridge.
In February last year, Federal Court Judge, Steven Rares rules that the transfer was not legal and that Leveraged Equities acted improperly when it sold Mr Goodridge’s investments to cover a margin-loan shortfall.
Mr Rares ordered Bendigo and Leveraged Equities to return the investments.
Judge Margret Stone ruled that Mr Goodridge must now return the 5.6 million units of Macquarie CountryWide Trust he was awarded after the trial, or A$5 million, to Leveraged Equities and Bendigo.
However, Mr Stone also agreed to let Mr Goodridge file a request within 14 days to place the order on hold pending a possible appeal to the country’s High Court.
Mr Goodridge said he will "probably appeal."
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