CBA-ASIC Compensation Deal

CBA settlement a lesson to banks: ASIC"Bank's decision a timely and fair act

By Kate Kachor

Mon 17 Sep 2012

ASIC has called on Australian banks involved in Storm Financial litigation to "do the right thing" by investors and follow CBA's settlement decision.

The Commonwealth Bank of Australia's (CBA) decision to pay an extra $136 million in compensation to ex-Storm Financial (Storm) clients has been labelled a timely and fair act by ASIC, with the chair of the corporate regulator hoping the move will prompt other banks, with links to Storm, to follow suit.

Late Friday afternoon, the CBA and ASIC reached a settlement on behalf of Storm clients, resulting in the banking group agreeing to pay an extra $136 million on top of a previously agreed figure of $132 million.

The additional amount takes CBA's total financial compensation regarding Storm claims to $268 million.

The latest settlement figure will result in around 2400 individual clients receiving compensation of at least 55 per cent of their total loss, ASIC chairman Greg Medcraft told a media briefing in Sydney on Friday.

"This is a very significant settlement. It is actually one of the largest settlements we [ASIC] have ever achieved for investors," Medcraft said."

You can see the full article at the following: http://www.investordaily.com.au/cps/rde/xchg/id/style/15154.htm?rdeCOQ=SID-0A3D9633-BC51FBF5

 It makes you feel all rosy inside when you read something like this! The Banks doing the right thing at long last. They and Storm diddled their clients out of $3 billion dollars and now the CBA (the arch villain) wants to give a "tithe" in return (which from memory is about one-tenth) back. This sort of gesture really restores one's faith in human kind.

Below you will find documents relating to this latest offer by the CBA which came about basically because ASIC is willing to deal with the Devil. He is everywhere to be found in the detail.

The fact that ASIC sold its soul by agreeing to 30 pieces of silver from the CBA speaks volumes for that organisation';s willingness to be bought off! No doubt it needs the money to buy a new set of teeth because it is tired of chewing on its gums. 

Quite frankly, we the general public of Australia are tired of paying for a financial watchdog that neither has the capacity nor the willingness to pursue corporate criminals. If I had my way, I'd shoot the hound because it is on its last legs and replace it with a Rottweiler that can take a piece out of the bad guys!