BoQ under fire in Storm case

by BN18 Sep 2009

Bank of Queensland "has a case to answer" over its lending practices to clients of Storm Financial.

This is according to Bernie Ripoll the chairman of the federal parliamentary committee investigating the advisor's collapse, reported The Australian Financial Review.

BoQ chief executive David Liddy also came under renewed fire for his bank's practices and policies after he appeared before the committee on Wednesday night to explain its involvement.

The criticism comes as the bank prepares to file the first defense today against a representative action being taken on behalf of hundreds of former clients seeking damages.

The former clients also want to have their loans made void.

Liddy claimed that while several banking practices had to be reviewed, it had done nothing "dishonest or illegal".

Ripoll agreed that, on the evidence before the committee, BoQ's practices would need to be reviewed.

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