• Contact
  • Feedback
Banking Day
Stay Ahead. Stay Informed.
Concise. Candid. Provocative.
Get the daily banking news that matters
Banking Day – Your trusted source for independent financial insights.
Subscribe Now
  • News
  • Topics
    • All Topics
    • Briefs
    • Major Banks
    • Authorised deposit-taking institutions
    • Insurance, funds and super
    • Payments, mobile & wallets
    • Consumer lending
    • Mortgages
    • Business lending
    • Finance regulation
    • Debt capital markets
    • Ratings agencies
    • Equity capital markets
    • Professional services
    • Work & career
    • Foreign news
    • Other topics
  • Free Trial
  • Subscribe
  • Resources
    • Industry events
  • About us
    • About Banking Day
    • Advertise
    • Feedback
    • Contact Banking Day
  • Search
  • Login
  • My account
    • Account settings
    • User Admin
    • Logout

Login or request a free trial

CBA close to ending Storm saga

22 October 2010 5:27PM
Commonwealth Bank has dealt with the majority of customers caught up in the failure of Storm Financial, the bank reported yesterday.According to the CBA's 2010 sustainability report, 60 per cent of offers made to customers who suffered financial difficulty or loss as a result of advice given to them by Storm had been accepted at June 30. The bank expects the compensation scheme to be concluded by the end of this month.Storm Financial recommended an investment strategy based on double gearing. Clients were advised to take out a home equity loan and use the funds raised as security for a margin loan.Commonwealth Bank was one of the lenders that worked with Storm.According to the Australian Securities and Investments Commission, 450 of Storm's clients ended up owing their margin lender more than the value of their portfolios.In the worst cases, involving about 300 clients, a total of $20 million was owing after the onset of the bear market in 2008 and the collapse of Storm.CBA's offers include loan reductions and write-offs, restructures, reduced or zero interest for the life of the loan and permanent tenancy arrangements.

I'm a returning subscriber

*
Password reset *
Login

Request a free trial

  • Emailing you the news at 7am.
  • Covering core lending and funding issues, strategy, payments, regulation, risk management, IT, marketing and more.
  • Original news and summaries of major stories from other media – ditch your newspaper subscriptions.
  • Focused on banking and finance, saving you the time spent wading through newspapers and other services.
  • With reporting from former editors and senior writers from the AFR and The Australian.
  • Configured for your phone, laptop and PC.
Free trial Banking Day
Stay Ahead. Stay Informed.
Concise. Candid. Provocative.
Get the daily banking news that matters
Banking Day – Your trusted source for independent financial insights.
Subscribe Now

Copyright © WorkDay Media 2003-2025.

Banking Day is a WorkDay Media publication

WorkDay Media Unit Trust

  • Privacy policy
  • Terms of access and use