CBA not proud of Storm loans
Commonwealth Bank says its’ staff were pressured by former colleagues who defected to go and work at failed Townsville based financial planning firm Storm Financial to approve bigger loans than the bank’s systems would normally allow.
The Commonwealth said it was "not proud" of its shortcomings and admitted its lending behaviour "fell below our usual and expected standard.
We have discovered that, when it came to providing loans, mostly secured by property, we failed at times to follow our own policies and lending practices.
Additionally, a property valuation assessment system known as VAS was misused on occasion by some staff with the effect that loans against some properties were larger than they would otherwise have been."
About 3,000 Queenslanders lost their life savings and some lost their homes as a result of the collapse of Storm Financial.
Source: Courier Mail