Aptly named Storm Financial (planning, that is – no irony intended) managed to sink $3 billion of investors’ money by channelling home & margin loans (to buy shares) and other investment products from Big Banks to unsophisticated investors often unable to support the debts.
Commonwealth Bank’s Chief Executive has admitted that his bank has lots of explaining to do, and in serious damage-control, accepted a formal mediation scheme to resolve a queue of claims.
ANZ’s former CEO, in charge during the Opes Prime version of the above, admitted this week to no such failings. Naturally he couldn’t be aware of all minor financial dealings, even when his bank was exposed to the tune of $600m. A bagatelle.
In unrelated news remuneration experts report that last year average total pay for chief executives of Australian companies increased 20%, while sharemarkets fell 40%.
Add the insult of token executive pay freezes. And watch out for the rapid defrost, as bonuses & incentives get ramped up.