fortescue takes first step in debt reduction, page-58

I recently posted that Macquarie Bank changed the LVR on margin lending for GMG (substantial holding held for over two years) from 82.5 to 75.00%

Had to have clear funds in account this morning, I rang MacBank yesterday to confirm amount required.

The way Macquarie Prime accounts for margin loan is different to others, I asked him twice and he was emphatic that yes I needed to deposit funds, to avoid them selling part of my portfolio.

I sold GMG at $4.75 to be on the safe side. This morning I checked the margin loan and had available funds to redraw of the original balance plus sale proceeds from GMG.

I rang and complained and they advised a supervisor would look into the matter, received a call back that basically ended with Mac Bank admitting an error in the advice was made.

Basically I did not needed to sell part of holdings in GMG the reduction in LVR simply reduced funds available to use as part of loan.

This has now triggered CGT event and to add salt to the wound, GMG went up to $5.01 today.

I asked Mac to play back the call from yesterday to confirm his advice, they did and apologised for the error.

Compensation is not on the table, it stinks when they make a mistake the investor pays. Each month they draw a hefty amount in interest and transaction/brokerage fees.

I just cannot believe my luck, total cost to me in excess of $20k.