Sleaze Bank class action launches

It’s a go:

Australian litigation financier IMF Bentham Ltd said it would fund an open class action lawsuit against Commonwealth Bank of Australia in relation to allegations it oversaw thousands of breaches of anti-money laundering rules.

IMF said on Tuesday that it will bankroll the class action on behalf of all CBA shareholders who bought stock between Aug. 17, 2015 and Aug. 3, 2017, without elaborating on the reason for that timeframe.

The decision to file a lawsuit comes a day after a management shakeup at the country’s biggest lender which involved three of its nine non-executive directors leaving.

Comments

  1. 90 % of people who bought during that time should be happy cba never disclosed earlier as the share price was higher when it was disclosed.

  2. Another day, another scandal: CBA blames customers for identity theft:
    https://theconversation.com/another-day-another-scandal-cba-blames-customers-for-identity-theft-83433

    The banks have saved a lot of money by closing branches, and trying to have as little physical contact with the customer as possible. Now they blame the customer for the problems this causes.

    Add this to selling policies that could never pay out, underpaying employee super, overcharging half a million credit card customers and the whole ComInsure cesspit, one wonders what the other undisclosed liabilities are?

  3. past shareholders suing current shareholders (not managers) for damages caused by managers elected to run company by the very shareholders who are initiating a lawsuit while letting managers escape with big bonuses.
    The idea of LLC was established exactly to limit punishment of shareholders for not keeping an eye on management to the amount they invested not more. Now they want something better than LLC, shareholders want ultimate protection that makes their investments risk free and profitable at the same time.

    Speculative investors get return without any risk, managers get big bonuses without any responsibility, society gets total destruction, …

    late capitalism reached a level of total decadence

  4. This is really getting out of hand. AUSTRAC, another ASADA. I “heard” some senior AUSTRAC officials already regret their civil intervention. This is not the path intended when they first thought of flexing their regulatory/compliance muscle. Ego, ergo.

    • Just wait until the USA regulators get involved, Wasn’t HSBC fined $1.9bn for money laundering?

      So why would AUSTRAC regret doing their job?

    • Too right Simone, this has gone on too far.

      I bet the stupid AUSTRAC guys totally regret committing career suicide by actually seeking to apply the laws they are meant to enforce against their potential future employer. To be fair they probably weren’t brought across to CBA because they weren’t enough fun on the beers!!

      • It will be interesting to discover the tipping point that took AUSTRAC from working with CBA over a number of years on this compliance matter to initiating civil proceedings.

        I have no doubt AUSTRAC did not foresee the gross over-reaction that has erupted.

      • “on this compliance matter”

        Hahahahahahahahahahaha!!!!

        You say gross overreaction, I say ongoing exposure of systematic wrongdoing within an organisation which is showing has disavowed themselves of any obligation to the society in which they operate. Six of one, eh?

      • That’s an extreme position Lignje. It’s largely a compliance matter now rectified which saw 4,000,000 transactions reported correctly and apparently due to a coding error related to the new cash deposit machines, 53,000 reported late, of which 1600 are allegedly suspect.

        We await Court proceedings and CBAs defence or alternatively a negotiated settlement.

      • Simone – it’s not “largely a compliance matter”, it is the subject of civil proceedings in which CBA are alleged to have failed to promptly identify and report the money laundering activity of a number of individuals who were subsequently arrested for their role in laundering millions of dollars for overseas-based drug syndicates, amongst other failings.

    • You “heard”? Do you mining pigs share the same trough as the banking pigs? Troughside rumours?

  5. Isn’t the timeframe simply the period from when CBA internally first knew about it all to when it was disclosed?