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CBA deal with Bankwest needs BIG TIME scrutiny and not by the useless ACCC

Posted by on in Corrupt Regulators
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02 Dec, 2011 04:00 AM
AN article in Queensland Country Life reported that Bankwest had called in receivers on the properties owned by Richmond Mayor John Wharton. He is not alone so much so that I have formed a class action group over of Bankwest's actions since they were bought out by CBA.

The outcome is many hard working Australian families and businesses have lost everything because of the corporate greed of CBA and the need to be seen to be doing the right thing by the Government. I would put losses by these families and business at over half a billion dollars.

We believe there have been backroom deals done between the Government and the CBA on this. The huge winners have been CBA and the receivers who feed off the carcasses of the Australian families and businesses that CBA/Bankwest has put to the sword.

In 2009, I was involved in a property that Bankwest sent receivers into. We were not behind in payments and we still have over half of our construction funding available to continue. They gave us 24 hours to pay back $6 million odd dollars; no reason, just give us our money back.

I placed ads in the Financial Review seeking aggrieved clients for a class action against CBA and Bankwest. I received over 100 calls in the first two days and over 180 to date.

Since CBA took over Bankwest all hell had broken loose. People who had never had an issue with their loans all of a sudden had the bank calling them in. What had changed?

In 2008 Bankwest was in trouble as its parent HBOS was broke, and CBA was asked to put together a rescue package by the treasure Wayne Swan (and Rudd) to buy Bankwest from HBOS.

Special deals were done to accommodate this by the Government and this opportunity was not afforded to any other banks at the time, though a few others could have afforded it.

ACCC signed off amazingly quickly. Graham Samuel has said since that he felt "pressured" to sign off the acquisition. Some believe this whole purchase was illegal under the Corporations Act.

The deal was done so quickly that CBA (supposedly) said it did not have time to do the proper due diligence on the commercial loan book of Bankwest so they put a clause in the sales agreement (which we want to get our hands on).

The provision stated there would be a "clawback" on the original consideration paid for Bankwest by CBA if any of the loans were deemed by CBA to be "bad' or "doubtful".

This meant CBA had an opportunity to assess their own book and write off what they wanted and this would be paid back to them by Lloyds. Nice.

Around this time many Bankwest customers who had never had a problem with their loans in paying them back or drawing down funds pretty much immediately started to have some trouble with their facilities.

CBA pretty much put a halt to all loans, drawdowns, extensions, approvals after their acquisition. This meant people who were just finishing their developments could not complete and CBA/ Bankwest forced them into a position where they defaulted on their loans, Bankwest put in receivers and subsequently sold the property at a portion of their value. Sometimes at 8 percent of their value.

We have been told by bank officers off the record that Bankwest simply drew a line in the sand and said all these loans have to go. And over the past two years this is what has happened about a billion dollars' worth.

It appears now (some two years later) that CBA may be in its financial stages of writing off these loans before they try to bring Bankwest under their banking licence in May. This is why Mr Wharton's loan (and so many others) are being called. There have been some suggestions of possible misconduct by CBA against HBOS, Lloyds and the British Government.

When CBA bought Bankwest off HBOS and once the deal was done, CBA then assessed the Bankwest loan portfolio and wrote any 'bad or doubtful' debts off. This provision went from about $80 million the year before to $900 million that year.

The provisions were in the purchase agreement that these bad or doubtful debts would come off the purchase price under a 'adjustment to the consideration" in their terms.

So $900 million comes off the purchase price. This was in the year when CBA made Australia's highest corporate profit of $6.5b in the middle of the worst economic disaster in 80 years. Fishy?

It is very hard when you have worked your whole life to be wiped out by a stroke of someone's pen simply for financial gain.


Source: North Queensland Register



PLEASE EXPLAIN, WAYNE SWAN AND KEVIN RUDD. Just how much pressure was put on Graham Samuel ACCC to hurry up and sign?







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  • Denise
    Denise Saturday, 13 October 2012

    I spoke with Guy this week. The situation regarding Bankwest and the sale of Bankwest to CBA has stirred up some very muddy waters indeed! I have spoken to a few of these developers and businessmen who through no fault of their own are caught up in this scandal. They were not in default with payments but rather were thrown into default via dodgy bankster deals. The Government must nationalise these banks to ensure consumer confidence and trust in the banking sector. There is no other way. The Government had laws but was not enforcing those laws and the banks were milking the system for all its worth. My recommendation is to seek funding, as a group, from IMF Limited. Failure to do so will see the group splintered in six different ways.
    Where there is unity there is power. The Banking Demi Gods must be bemused right now.
    [email protected]

  • doyla66
    doyla66 Saturday, 13 October 2012

    They definitely will make more progress working together and will make more impact on the media and the government if they do go through IMF from what I've seen.
    I would like to see all the banking "awareness" groups, consumer agencies and financial counsellors dealing with the fall out around Australia speaking out publicly. I know there is a lot going on unseen. This is not a time for them to be shy. Unfortunately some could be concerned about their government funding.

  • doyla66
    doyla66 Saturday, 13 October 2012

    HBOS - Proof of Mortgage fraud based in England by brokers

    Neighbouring Halifax and Lloyds TSB branches outside Crossgates Shopping Centre, Cross Gates, Leeds.
    During 2003 The Money Programme uncovered systemic mortgage fraud throughout HBOS. The Money Programme found that during the investigation brokers advised the undercover researchers to lie on applications for self-certified mortgages from, among others, The Bank of Scotland, The Mortgage Business and Birmingham Midshires.[26] All three are part of the Halifax Bank of Scotland Group, Britain's biggest mortgage lender. James Crosby, head of HBOS at the time, refused to be interviewed in relation to the exposed mortgage fraud. Further examples of mortgage fraud have come to light, which has seen mortgage brokers take advantage of fast track processing systems, as seen at HBOS, by entering false details, often without the applicants knowledge.
    HBOS bad loans

    On Friday, 13 February 2009, Lloyds Banking Group revealed losses of £10bn at HBOS, £1.6bn higher than Lloyds had anticipated in November because of deterioration in the housing market and weakening company profits. The share price of Lloyds Banking Group plunged 32% on the London Stock Exchange, carrying other bank shares with it.

    In September 2012 Peter Cummings, the head of HBOS corporate banking from 2006 to 2008, was fined £500,000 by the UK financial regulator over his role in the bank's collapse. Cummings was also banned from working in the banking industry by the Financial Services Authority (FSA). The losses in his division exceeded the initial taxpayer bailout for the bank in October 2008.
    Reading branch fraud and Operation Hornet

    On Sunday 3 October 2010, Lyndon Scourfield, former director of mid-market high-risk at Bank of Scotland Corporate, his wife Jacquie Scourfield, ex-director of Remnant Media Tony Cartwright and ex-NatWest banker David Mills were arrested on suspicion of fraud by the Serious and Organised Crime Agency[30]. The scandal centred around Lyndon Scourfield's use of his position to refer companies to Quayside Corporate Services, owned and operated by David Mills, for "turnaround" services which Quayside was unqualified to provide. Several members of Quayside's staff had criminal records for embezzlement. Customers were allegedly inappropriately pressured to take on excessive debt burdens and to make acquisitions benefiting Quayside.[31]

    [edit] Operations

    HBOS conducts all its operations through three main businesses:
    Bank of Scotland plc
    HBOS Australia
    HBOS Insurance & Investment Group Limited

  • doyla66
    doyla66 Saturday, 13 October 2012

    "Several members of Quayside's staff had criminal records for embezzlement".

    I wonder what we would find amongst the staff of our Australian Banks and lenders?
    From my experience, that could explain some of their behaviour.

  • doyla66
    doyla66 Saturday, 13 October 2012

    "Graham Samuel has said since that he felt "pressured" to sign off the acquisition."

    A big gaping question needs to be asked at this point: pressured by whom? pressured for what reason? So far, he has not stated the answers to this. He has only provided vagaries (even though we can guess the answers). He needs to spell this out, loud & clear. Does he require the protection of a full Royal Commission to be able to do so?

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