Storm clients unlikely to share CBA profits

SICAG calls fall on deaf ears

By Kate Kachor
Wed 20 Jan 2010

SICAG has called on the CBA to share part of its forecast $2.9 billion half-year profit with ex-Storm Financial clients.

Commonwealth Bank of Australia (CBA) is unlikely to share a percentage of its forecast $2.9 billion half-year profit with former clients of Storm Financial, despite the urgings of an investor group.

Storm Investors Consumer Action Group (SICAG) yesterday called on CBA to share a portion of its profit with its members.

"While we are pleased to see Australia's biggest bank bounce back strongly from the global credit crisis, we must not lose sight of the fact that many CBA clients have suffered greatly during the same period," SICAG co-chairman Mark Weir said.

"Sadly, some of our members will never recover from the financial body blow that was inflicted on them when the bank decided to shut down Storm's index funds without warning."

While SICAG had been encouraged by CBA's good faith through its resolution scheme, Weir said the bank was now in a position to show an "increased level of generosity" to Storm-CBA clients.

"It's timely that we repeat our challenge to the other banks who were involved in the Storm disaster - particularly the Bank of Queensland, ANZ, NAB, Westpac, Macquarie and Suncorp - to come to the negotiating table in good faith and restore our members' faith in the Australian banking system," Weir said.

A CBA spokesperson would not directly comment on any potential profit sharing with Storm clients.

"The Commonwealth Bank's priority is to work with our customers impacted by the collapse of Storm Financial," the spokesperson said.

"We have undertaken a resolution scheme that we remain committed to and that will address these issues. We continue to seek an acceleration of resolutions, offer assistance in paying for independent legal and financial advice, and work with former High Court Justice Ian Callinan to achieve independent and fair outcomes for customers.".

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