Former Storm clients with links to a number of Australian banks have petitioned the government over compensation.
Former clients of Storm Financial (Storm) have called on the federal government to pay them full and immediate compensation for losses incurred by the involvement of Australian banks in the collapse of the advice group.
In an online petition directed at Prime Minister Kevin Rudd, ex-Storm clients claim a number of Australian banks formed alliances with Storm "for personal gain, using corrupt banking practices and strategies that placed our assets at high risk".
"The fact that measures have now been taken by the government to rectify this situation does not excuse its failure to identify and take remedial action long before. The people that have suffered, the vast majority being elderly Australians that placed their trust in a defective financial system, have been left destitute as a consequence," the petition said.
"The banks have ruined us and we have no money to fight back. The banks know this and have taken full advantage of our circumstances.
"The banks acted outside the law and they are the ones that are in the wrong. The losses we have incurred are but a fraction of the record profits these banks are making. They should therefore be forced to repay our losses that they had a major part in creating."
Former Macquarie Bank client Frank Ainslie yesterday created the petition, which has already garnered more than 40 signatures.
"The plan was to be a self-funded retiree - that plan no longer exists," one petitioner said.
"I checked with ASIC before investing in Storm just to be on the safe side! I cannot now trust the advice of financial planners or banks."
A number of ex-clients used the petition to point the finger at Commonwealth Bank of Australia, Macquarie Bank, National Australia Bank, and Bank of Queensland over their personal financial losses.
Meanwhile, the latest accounts statement from Storm liquidator Worrells Solvency and Forensic Accountants claims the advice firm owes one secured creditor $5 million, with more than $73 million still outstanding to 564 unsecured creditors.
The two non-consecutive alphabetic letters encountered most often last week caused more controversy than the underlying policy they represented, Wouter Klijn writes.... read more »
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