Commonwealth Bank resorts to lies too take out Storm

Report : Jimmy Olsen

Saturday 29th October 2011

Content : CBA notice of demand, CGI margin call, Storm default notice

Desperate CBA distorts reality by calling a default on a margin loan in dispute, in order to avoid the courts.

The Commonwealth Bank of Australia’s (CBA) 3 year campaign to sweep its victims along with Storm Financial Ltd (Storm) under the carpet for minimum cost has had only limited success following the ruining of Storm and its clients by CBA. On 8 Jan 2009… one (1) day before CBA was due in court for its misleading and deceptive conduct directions hearing… Storm was ambushed with notices of demand from the CBA to repay its newly established facility and its equipment finance facilities on or before the next day 9 Jan 09. This underhanded action by the CBA conveniently forced Storm into voluntary administration. The CBA claimed that Storm was in default with its margin loan facility since 10 Oct 08. The extent to which this manoeuvre by the CBA was complete taurus excretus can be seen in the following points:-

1. Storm was disputing and had advised the CBA that Storms as well as many other clients’ margin loan defaults were unsubstantiated. The Plain Truth now has evidence to show that the CBA knew at the time that their client data was wrong but CBA chose to proceed with the defaults because the banks liquidity was diminishing, it needed the money and the CBA knew that possession is 9/10 of the law.

2. CBA had executed the documentation for a $30m facility to Storm on 24 Oct 08…being 14 days AFTER the date CBA claims Storm was in default on its margin loan. This facility was for the purpose of paying out an existing $10m Macquarie facility with the remaining $20m to be used as working capital for Storm. How is it possible for the CBA to have executed a $30m facility with a company who they later claimed was already in default? The answer is that Storm could not have been in default in their eyes.

3. CBA actually advanced $10m of the $30m facility on Wed 29 Oct 08 to refinance the Macquarie Bank facility

4. The CBA charges Storm AND draws the relevant fee and stamp duty from Storms account for the full $30m facility.

5. In addition to the $30m facility, CBA advanced a further $4.725m to settle the purchase of Storms new Melbourne building on 5 Dec 2008. This advance occurred almost 2 months after the alleged date of default.

Clearly CBA was not in reality concerned with Storms so-called ‘margin loan default’ because, if it were then the CBA would not have extended any facilities to Storm after 10 Oct 08. Following the findings by Justice Greenwood in the Federal Court on 24 Dec 08, that the CBA had a case to answer it is obvious that the reason the CBA defaulted Storm on the 8 Jan 09 was to prevent Storm from proceeding with the misleading and deceptive actions against the CBA in the Federal Court on the 9 Jan 09. An insider has informed The Plain Truth that, at that time there was a group of CBA executives, desperate to prevent the banks conduct in covering up their actions from being made public, especially through the courts. This was an abuse of power by particular CBA executives and likely to be criminal, despite that some of them are no longer working for the CBA.

Content : CBA notice of demand, CGI margin call, Storm default notice

Documents

- 2008.12.29 CBA notice of demand

- 2008.12.31 CBA notice of demand

- 2008.12.31.2 Court summary of Judgement

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