CGI margin call procedures manual exposes Narev and Cohen lies.

Reporter : Tom Tucker

Content : CBA margin call procedures manual, Ian Narev CBA, Storm PJC, CGI margin call notices.

Tuesday 28th August 2012

Following representations and inquiries by our investigators, The Plain Truth has obtained an extract from The Commonwealth Banks,  Risk Management and Margin Calls Procedure Manual'.  This extract is from section  6.1 Margin Call Letters   (Colonial)' of the CGI procedures manual and puts to bed claims by the Commonwealth Bank that it had changed its procedure from ' a) contacting both advisor and client in the case of a margin call to, b) only contacting an advisor who was then responsible for contacting the client of any margin call.

It was claimed by both Mr Narev and Mr Cohen that this change was after 2003 but well in advance of the events of late 2008.  This assertion by Narev and Cohen is clearly seen in the answer below to a question put by Senator McLucas at the Parliamentary Joint Committee Hearing on Corporations & Financial Services ' Fri 4 Sep 09 ' CFS 75.

To cover its tracks for failing to issue margin calls, the CBA line as can be seen above has consistently been…that a change of procedure occurred… at some unknown point in time and the CBA has no documentation to prove it (how convenient).  By taking this line, the CBA cunningly attempted to shift responsibility away from its own failure and onto Storm.

The reality, rather than the CBA's BS, is reflected in the following extract from the CBA procedures manual whose print date was January 2007 and which prevailed throughout 2007 and 2008.

Clearly the normal procedure was to have a copy of the margin call letter sent to all parties to the margin loan, including the advisor and the borrower.

The format of this letter is consistent with the historical format of margin call notices received by Storm and Storm clients in 2002-03 as well as consistent with the testimony of Emmanuel Cassimatis, other Storm advisors and Storm clients.  Furthermore this format is also consistent with the margin call notice received by non-Storm advisors and dealer group during 2008.   Tellingly, CGI has yet to produce copies of the margin call notices using this same format of which they claim to have issued 2,600 during the relevant period in 2008.  This claim was made numerous times, including at the Parliamentary Joint Committee Hearing on Corporations & Financial Services ' Wed 28 Oct 09 ' CFS 30.

Although The Plain Truth currently only possesses extract 6.1 of The Commonwealth Banks,  Risk Management and Margin Calls Procedure Manual', we expect to receive from the same source at the CBA further pages of their procedures manual along with other annexures, documents and emails.  These documents should be in our possession within 14 days.

 

The Editor

The Plain Truth,

PO Box 2783

New Farm  QLD  4005

 

Content : CBA margin call procedures manual, Ian Narev CBA, Storm PJC, CGI margin call notices

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