Ant,Forget ASIC and ASX, it will be years before they take any...

Ant,

Forget ASIC and ASX, it will be years before they take any action.

The current issue is ANZ and how it used its $95m emergency loan, forced on Opes Prime, to enable it to gain an unassailable legal position, and to change its previous loan agreement, which enabled the bank to avoid an obligation to pay up to $350 million when Opes collapsed, which they were told it would, by Blumberg and Ferriers. Blumberg tried to reverse the loan, but ANZ refused.

In the original agreement the loan could be netted off by pricing the shares mark to market, under which if the accounts were closed-out, ANZ would have needed to pay out Opes the difference between the $650 million in loans and value in clients' shares. The agreement was changed so that it is now based on what ANZ get for the shares.

But what about the client agreements with Opes, which were based on mark to market LVRs. By changing the financier agreement to realisable value, the whole LVR structure and agreement between Opes and clients becomes unworkable. The whole business model breaks down at that point. On one side it is market to market, on the other its realisable value.