CBA settles with first 50
(30 October 2009 – Australia) The Commonwealth Bank has admitted it made mistakes with the Storm Financial clients and has reached settlements with more than 50 customers who were encouraged to borrow money to buy the ill fated shares.
CBA announced it has reached a resolution with more than 50 of the 2,300 customers involved in a scheme set up by the bank.
The bank was responsible for more than 30 percent of loan customers of the Townsville-based Storm. Customers were encouraged to borrow money to buy shares often lending against their houses and their pensioner incomes.
About 50 of these customers have now reached a settlement with the bank, but some victims of the collapse, who say they remain in severe financial distress, described the bank chief's words as disingenuous.
CBA, chief executive officer, Ralph Norris used a Senate hearing to say he was sorry to more than 2,000 CBA customers.
Storm Investor Consumer Action Group’s co chair, Noel O’Brien said that the group is always comfortable with people admitting that they've made a mistake, but that it's just a little bit too late.
He says it is only pressure from those affected that has drawn the bank's apology.
The bank was responsible for more than 30 percent of loan customers of the Townsville-based Storm. Customers were encouraged to borrow money to buy shares often lending against their houses and their pensioner incomes.
About 50 of these customers have now reached a settlement with the bank, but some victims of the collapse, who say they remain in severe financial distress, described the bank chief's words as disingenuous.
CBA, chief executive officer, Ralph Norris used a Senate hearing to say he was sorry to more than 2,000 CBA customers.
Storm Investor Consumer Action Group’s co chair, Noel O’Brien said that the group is always comfortable with people admitting that they've made a mistake, but that it's just a little bit too late.
He says it is only pressure from those affected that has drawn the bank's apology.
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