Banks need to come clean over Storm

The parliamentary committee investigating the failure of the Queensland based financial planning firm Storm Financial says all banks that lent to Storm clients have to come clean and be frank about ”errors that may have been made”. The committee noted that just one, Commonwealth Bank, has so far apologised for its role.

However the inquiry found that most of the blame for the failure to notify clients of calls on their margin loans when sharemarkets fell sharply last year. The committee also heard from Storm clients that were given blank loan documents to sign, promised their homes were not at risk, and former clients that said they discovered loans they never knew they had, or uncovered inaccurate loan documents after Storm’s collapse.

Source: Sydney Morning Herald

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