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ASIC probes top BoQ branch results

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Australian Broker | 14 Jul 2009, 12:00 AM Agree 0
Documents reveal a Bank of Queensland branch at the centre of the controversy around Storm Financial was lending more than $20 million a month to the collapsed advisor at the height of its popularity, reported The Australian Financial Review.

  • James Smith | 14 Jul 2009, 01:28 PM Agree 0
    Talk about brand damage - this is a doozy. The franchisees to B o Q must absolutely be spewing.
  • SunnyCoastBroker | 16 Jul 2009, 02:26 PM Agree 0
    This latest revelation regarding BOQ and its executives poor judgement does not surprise me in the least.
  • SunnyCoastBroker | 16 Jul 2009, 02:38 PM Agree 0
    This latest revelation regarding BOQ and its executives poor judgement does not surprise me in the least. As a past employee in a management role, I can recall a particular Managers' meeting where a certain owner-manager was held up as a shining light who we should all attempt to emulate. All of us Managers knew that there was no way this particular owner-manager could possibly be writing the levels of business being recorded, and sure enough, he ended up being booted for a range of transgressions.It wouldn't surprise me if Liddy's arrogance proves to be his downfall.
  • FormerBOQ | 16 Jul 2009, 04:41 PM Agree 0
    Slowly realisation is dawning. A franchise model to make a small bank look larger than it really is or deserves to be. Defray operating costs to franchisees to make the Bank look more efficient than it really is. Then keep for yourself the majority of profits generated by the same franchisees to make the bottom line and share price better than it deserves to be. Based on this it is hardly surprising (although not excusable) that franchisees will look for "creative" ways to build their bottom line to meet the crippling costs of running these branches. The Board members of BOQ must be very nervous as Liddy's ego continues to run out of control. If the damage continues they won't just have to deal with Storm and ex-franchisee litigation but will have more from current OMBs who are watching the value of their business being destroyed by arrogance. And this is probably only the tip of a rather large iceberg. It is little wonder that this house of cards is being shunned by potential suitors giving rise to a project that can't find a pathway.
  • James Smith | 16 Jul 2009, 10:35 PM Agree 0
    Every comment reaffirms that franchising in finance related businesses does not work. I note an Adelaide company trying to get a franchise business off the ground It wont work and buyers should be aware of misleading forecasts and misleading promises
  • Walter | 17 Jul 2009, 10:42 AM Agree 0
    So Bank of Queensland can show us a pathway the only pathway if you become a franchisee is to financial hell I pity them.
  • FormerBOQ | 17 Jul 2009, 11:46 AM Agree 0
    Anyone notice in yesterday's AFR that Slater and Gordon have a "star witness" who is an ex-BOQ internal auditor. It appears that he may blow the lid on the lending practices of this branch. That should make the executives on the Bank's audit committee somewhat "anxious".
  • Finance Franchise Folly | 18 Jul 2009, 12:50 PM Agree 0
    Imagine being asked to pay between $700k and $1 million for a bank franchise in a tough market where your market share is in decline, your franchisor keeps most of the money and head office has an innate ability to attract negative publicity. The only reason these franchises got off the ground outside of Qld was because of hard working brokers. Then they took it away from us and now their model is failing - they really need brokers but could we trust them?
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