The Commonwealth Bank has agreed to a settlement with former Storm Financial clients and plans to discuss compensation details this Saturday in Townsville, North Queensland.
Some former clients of Storm Financial will be eligable for cash and other concessions as a part of the compensation deal. In responding to the deal, the Storm Investors’ Consumer Action Group says clients can reject compensation offers made by the Commonwealth Bank if they are not satisfied with the terms.
Yesterday Storm Financial founder Emmanuel Cassimatis told The Australian that he believed the $200 million compensation deal from Commonwealth Bank was proof that the bank was responsible for Storm Financial’s collapse at the start of 2009.
“It was a massive train wreck and Storm was the driver of the train,” he said. “It was absolute mayhem and there were bodies everywhere. But Storm didn’t have control of the signals. It was the banks which gave us the green light that led to the crash.”
Cairns store manager Mark Peters is hopeful that the CBA compensation deal will help him recover some of his $800,000 portfolio that was lost when Storm Financial collapsed.
“As I understand it, we will be reimbursed to the point of the first margin call, but I never received a margin call.” he said. “We were just told suddenly that all our assets had been sold.”
