Storm chief attacks CBA

By Tim Neary | 05 Mar 2010

Storm Financial founder and chief executive Emmanuel Cassimatis has attacked the CBA and encouraged former clients to sue it for losses caused by the advisors collapse.

In a three page letter to former clients he also claims to have been "outmaneuvered" by the bank's "slick public relations departments", according to a report in The Australian Financial Review.

Cassimatis, who claims he will be seeking about $530 million from personal losses and the collapse of his business, said: "I believe the offer made by the CBA is intended to pay you a few cents in the dollar of the damages they will be liable for if sued."

He said the deal negotiated by lawyers Slater & Gordon was more favourable to the CBA than the clients.

But Slater & Gordon said: "Has Cassimatis not done enough for these people? They are in this position because of him and now he is trying to put the blame elsewhere."

Storm clients were encouraged to leverage their assets, typically homes or superannuation, and invest in Storm-badged investment products.

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Commented by: Broker Tony at 05 Mar 2010 01:26 PM

This is extraordinary. Storm markets to the victims, licensed advisors sell a particular strategy and the client is then referred to the bank to execute the strategy. Clearly the banks should not have approved a lot of the loans and their lending practices must be questioned. However when a client has been advised to implement a plan by a licensed professional and have agreed to do so without coersion then you would think most of the blame has to rest with the advisor. Mr Cassimatis is not the aggrieved party here and will receive no sympathy from me.

Commented by: Laughable at 05 Mar 2010 01:26 PM

I am in no way sorry that the CBA is being held accountable. It was unbelievably reckless in its control over credit for clients of Cassimatis. $200m is a drop in the ocean to what the CBA made out of the loans over the years. Cassimatis is also right up there in the blame game and I am damn sure he won't walk away penniless. His system had a downfall - when to quit to protect his clients investments. To do that would have cost him commissions. Shame Mr Cassimatis

Commented by: Pardon Me Broker at 05 Mar 2010 01:31 PM
Who put their clients into crazy levels of debt using margin loans that were up to 80% gaered that were secured with mortgages over homesWhich company collected big commissions paid for loans that his consultants were able to write with the banks?? Oh Yes that would be Storm !!!!!!!!!!

Commented by: SteveL at 09 Mar 2010 09:44 AM
Bank sets the policies and rules. Banks assess the applications and approve. Broekr / adviser structure the business to maximise lend / commissions. Client agree's and focusses on the end goal....MORE MONEY! All 3 are guilty of being greedy and all 3 should face the consequences....pretty simple

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