S&G lawyer just interviewed on ABC radio 5 minutes ago on supreme court steps other banks caught in the net
A STRING of Australian lenders including the recently merged Bendigo & Adelaide Banks, St George and Commonwealth Bank are exposed to clients that have accounts with Opes Prime.
At least three of the parties who have applied to the Federal Court to stop ANZ from selling shares seized from Opes Prime, also have debts owing to other banks.
According to documents filed with the Australian Securities and Investments Commission, CMG Equity Investments Pty Ltd and Gull Investments Pty Ltd each have margin loans from Bendigo Bank subsidiary, Leveraged Equities.
The ASIC documents indicate that each of the companies are liable to repay up to $20 million to Leveraged Equities.
The head of Bendigo's wealth business, Anthony Baum, refused to comment on any client matters but said that any Leveraged Equities' exposures would have to be secured against listed shares.
"Neither Bendigo and Adelaide Bank, nor its subsidiary Leveraged Equities, has any exposure to Opes Prime," Mr Baum said.
"Leveraged Equities lends only against stock it holds itself and therefore has no exposure to positions its customers might hold with other lenders."
CMG Equity Investments also has a margin facility with St George Bank.
Another Opes client, Solen Pty Ltd, has a margin facility with St George and $1.5 million owing to Commonwealth Bank.
While ANZ, Merrill Lynch and German bank Dresdner Kleinwort are directly exposed to Opes Prime, other banks now have indirect exposures to the collapse because of the fact that some Opes clients have several banking arrangements.
The financial stresses that may flow from the collapse could have implications on the capacity of Opes clients to repay St George, Commonwealth Bank and other lenders.
It is likely that other banks will be affected by the Opes Prime saga as more details surface on the loan obligations of troubled clients.
