Fin Review - 4/3/2010"A NSW Supreme Court judge has struck out...

Fin Review - 4/3/2010

"A NSW Supreme Court judge has struck out claims that Bendigo and Adelaide Bank's $490 million worth of loans given to Great Southern investors should be declared void, although both the bank and the investor suing it claim the move as a win.

Financial planner Stephen Navara took Bendigo Bank to court late last year in a bid to prevent it from handing over the details of 273 clients of his firm to credit agencies. The clients stopped paying the loans after it emerged that Great Southern had mismanaged its various agriculture managed investment projects.

Yesterday judge David Hammerschlag struck out parts of Mr Navara's claim, including arguments that the loans should be declared void on account of alleged misrepresentation or misleading conduct by Great Southern."

Further on it continues -

"The judge allowed the case to proceed on the narrower scope that the loans were not properly transferred, and hence cannot be enforced by the bank.

Mr Navara's lawyer, Daren Anderson, said his client preferred to fight the case on the narrower basis. The question of whether the bank can credit list his clients will return to court on March 12"



If it has not been thrown out then BEN must provide for a potential defeat in court and its consequences. Are they going to do it? No as long as Hirst is in charge.

Easy solutions: SACK Hirst and get a REAL banker in. Take all the provisions (which means kill the next quarterly result and take a hit on the share price) and start with a clean balance sheet. Play on the strength of BEN and grow it where it has core competencies. Give it 6 months and the share price will be higher than what it is today with heaps of potential. Should BEN win the court cases and all the class actions they can always reverse the provision and show an extraordinary profit.

Is BEN going to play it this way: UNLIKELY
Result: Share price will continue to languish around $10