'Not supported': CBA 'ulterior motive' theories on BankWest shut down
The financial services royal commission has shut down claims that the Commonwealth Bank had an ulterior motive to systematically default loans following its purchase of BankWest in 2008.
The commission has received numerous submissions from BankWest customers aggrieved at their treatment by CBA after it acquired BankWest at the peak of the global financial crisis.
Counsel assisting the commission, Michael Hodge, told the commission on Monday there had been various ulterior motive theories raised about the process. “The common element is they attribute to CBA an ulterior motive to systematically default loans,” he said.
Mr Hodge said significant work had been undertaken by the commission to look at the history of the ulterior motives theory. “We have made the decision that none of these ulterior motive theories rate consideration by case study,” he said.
However, Mr Hodge said this did not mean CBA's handling of the loans was proper and the commission would consider case studies next week relating to how the bank treated customers of BankWest after acquiring it. Read more
Cara Waters - Brisbane Times - 21 May 2018