ASIC takes banks to court over Storm

Wednesday, 22 December, 2010 - 11:13

The country's investment watchdog has announced it is starting legal proceedings against three of the nation's banks on behalf of investors in failed Storm Financial.

The Australian Securities and Investments Commission said it has commenced proceedings against the Commonwealth Bank of Australia, Macquarie Bank and Bank of Queensland over Storm's collapse in 2008.

"ASIC has continued confidential commercial discussion with some key parties, however, these have not resulted in an acceptable commercial resolution on compensation," ASIC said in a statement.

ASIC said the banks were involved in an unregistered investment scheme led by Storm.