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CBA dismisses staff pending investigation

by Staff Reporter8 minute read
The Adviser

CBA has confirmed that two of its former senior managers have left their positions after coming under scrutiny from the Australian Securities and Investments Commission (ASIC) in a seven month long investigation.

According to a report in today’s The Australian Financial Review, Townsville area manager Andrew Jackson and mobile lender Graham Lynham left their positions following a full investigation by ASIC and a separate inquiry by the bank into the collapse of advisory company Storm Financial.

The inquiry was believed to have focused on the relationship between individual bank employees and senior Storm staff, the criteria for loan approvals, the use of a desk-top property valuation system known as VAS, and margin lending.

Storm Financial collapsed on January 9 after it was unable to meet a CBA demand to repay a loan.

It is believed up to 2,500 investors have been caught up in the collapse, many of whom have lost their homes and life savings.

After initially denying any responsibility, CBA chief executive Ralph Norris admitted the bank had made mistakes and would compensate investors where fault could be established.

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